Question
1. If the unit selling price of a product is $8,000 and the contribution margin ratio is 30%, what would be the total variable cost
1. If the unit selling price of a product is $8,000 and the contribution margin ratio is 30%, what would be the total variable cost of the company if it sells 9,000 units of the product?
2. A company has fixed costs of $14,000,000 and wishes to earn a profit of $7,000,000. The company has a unit contribution margin of $3,000 and each unit of product has a unit selling price of $5,000. What is the minimum sales level required for the company to break even including the desired profit?
3. If the unit variable cost of a product is $7,000, and the company that manufactures it wants to earn 50%, what would be the company's contribution margin if it sells 4,000 units of the product?
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