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Break - even sales and sales to realize operating income For the current year ended March 3 1 , Kadel Company expects fixed costs of

Break-even sales and sales to realize operating income
For the current year ended March 31, Kadel Company expects fixed costs of $606,100, a unit variable cost of $58, and a unit selling price of $87.
a. Compute the anticipated break-even sales (units).
x units
b. Compute the sales (units) required to realize operating income of $139,200.
units
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a. Fixed costs divided by the unit contribution margin equals break-even point in units.
b. Sales (units)=(Fixed Costs + Target Profit) Unit Contribution Margin
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