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A company has the following costs and sales data: Sales price per unit: $75 Variable cost per unit: $45 Fixed costs: $200,000 Calculate the contribution

A company has the following costs and sales data:

  • Sales price per unit: $75
  • Variable cost per unit: $45
  • Fixed costs: $200,000
  1. Calculate the contribution margin per unit.
  2. Determine the break-even point in units.
  3. Calculate the break-even point in sales dollars.
  4. If the company wants to achieve a target profit of $50,000, how many units must be sold?

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