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Break-even analysis Refer to question number 2 for Bay Area Cycles. Required: Calculate Bay Area Cycles break-even in units and sales dollars. Question #2 Reads

Break-even analysisRefer to question number 2 for Bay Area Cycles.

  • Required: Calculate Bay Area Cycles break-even in units and sales dollars.

Question #2 Reads as follows:

CVP analysisCurrent operating income for Bay Area Cycles Co. is $70,000. Selling price per unit is $100, the contribution margin is 35% and fixed expense is $280,000.

Required: Calculate Bay Area Cycles per unit variable expense and contribution margin.How many units are currently being sold.

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