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Boswell Company reported the following information for the current year: Sales (50,000 units) $1,000,000, Direct materials $330,000, Direct labor $200,000, Other variable costs $70,000, Fixed
Boswell Company reported the following information for the current year: Sales (50,000 units) $1,000,000, Direct materials $330,000, Direct labor $200,000, Other variable costs $70,000, Fixed costs $360,000. a. Compute the unit contribution margin and the contribution margin ratio. Unit CM CM Ratio b. Compute the break-even point in units and sales dollars. BE (Units) BE ($) c. Prepare a CVP income statement for the break-even point. Sales - Var. Costs = CM - Fixed Costs = Net Income d. The company has a target income of $180,000. What are the required sales in dollars for the company to meet its target? Required $
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