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Can someone please answer questions 1 & 2 thanks. breakeven volume for her company is 40,000 units per year. She is somewhat confused with the
Can someone please answer questions 1 & 2 thanks.
breakeven volume for her company is 40,000 units per year. She is somewhat confused with the results shown above. In 2020 when 40,000 units were sold the company broke even (zero operating income). In 2021 when 40,000 units were sold the company had a profit of $250,000. Then in 2022 when 50,000 units were sold the profit was lower than the 2021 results. With the increase in sales, she thought her profit would be larger than it was in 2021. The selling price per unit remained the same over the three year period as did all the fixed (in total) and variable (per unit) costs. 1. Calculate the break-even point based on the information provided. 2. Prepare a variable costing income statement for each of the three yearsStep by Step Solution
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