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Campbell Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $43. Variable costs Manufacturing Selling Fixed coats

Campbell Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $43. Variable costs Manufacturing Selling Fixed coats 14 per unit 4 per unit Selling and administrative $156,000 per year $171,500 per year Manufacturing Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $160,000. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 20,800 units. how much could it pay in salaries for salespeople and still have a profit of $160,000? (Hint: Use the equation method.) Break-even point in units Break-even point in dollars b. Required sales in units Required sales in dollars c Fixed cost of salaries 18.195 $ 782,362

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