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Consider the following data for Google: Selling price per unit: $20 Variable cost per unit: $12 Fixed costs: $100,000 i) Calculate the contribution margin per

Consider the following data for Google:

  • Selling price per unit: $20
  • Variable cost per unit: $12
  • Fixed costs: $100,000

i) Calculate the contribution margin per unit.

ii) Determine the break-even point in units.

iii) Calculate the break-even point in sales dollars.

iv) If Google wants to achieve a profit of $50,000, how many units must it sell?

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