Question
Contribution margin, unit level costs (LO1). Bodacious Beats makes high-end headphones. At a volume of 15,000 units (headphones), per-unit price and cost data for the
Contribution margin, unit level costs (LO1). Bodacious Beats makes high-end headphones. At a volume of 15,000 units (headphones), per-unit price and cost data for the year just ended follow:
ItemAmount per unit
Selling price$800
Variable manufacturing cost $440
Fixed manufacturing overhead $50
Gross margin$310
Variable selling cost $40
Fixed selling and administrative cost $110
Profit$160
How many units (headphones) does Bodacious Beats need to sell each year to break even?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
