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The following information describes a product expected to be produced and sold by Pepin Corporation: Selling price.$32 per unit Variable costs..$27 per unit Total Fixed

The following information describes a product expected to be produced and sold by Pepin Corporation:

Selling price……………………………………….$32 per unit

Variable costs……………………………………..$27 per unit

Total Fixed costs………………………………….$850,000 per year

Required:

(a) Calculate the contribution margin per unit.

(b) Calculate the break-even point in units.

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