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A company predicts it will produce and sell 40,000 units of its sole product in the current year. At that level of volume, it projects
A company predicts it will produce and sell 40,000 units of its sole product in the current year. At that level of volume, it projects a sales price of $30 per unit, a contribution margin ratio of 40 percent, and fixed costs of $5 per unit. a. What is the company's projected breakeven point in dollars and units? b. What would the company's projected profit be if it produced and sold 30,000 units?
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