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(1) 25 Points The Sunn Company manufactures a single product and sells 20,000 units sells for $180 per un and whose variable costs are $135
(1) 25 Points The Sunn Company manufactures a single product and sells 20,000 units sells for $180 per un and whose variable costs are $135 per unit. The company's annual fixed costs are \$562,500. The Sales Manager predicts that next year's annual sales of the company's product will be 40,000 units at a price of $200 per unit. Variable costs are predicted to increase to $140 per unit, but the fixed costs will remain at at $562,500. What amount of income can the company expect to earn each year? (2) 25 Points Handy Home sells windows ( 80% of sales) and doors (20\% of sales). The selling price of each window is $200 and of each door is $500. The variable cost of each window is $125 and each door is $350. Fixed costs are $900,000. Compute (1) weighted-average contribution margin, (2) break-even point in units using the weighted-average contribution margin, and (3) number of units of each product that will be sold at the break-even point
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