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Cost-volume-profit analysis is used to analyze the relationship between revenues, variable costs, fixed costs, profits and units produced. For each of the following situations, calculate
Cost-volume-profit analysis is used to analyze the relationship between revenues, variable costs, fixed costs, profits and units produced. For each of the following situations, calculate the missing items. (a) Acme, Inc. sells its product for $45. The variable cost per unit is $24, and fixed costs are $1,672,500. What profit will Acme make if 225,000 units are produced and sold? (b) Beta Co, can sell 140,000 units in one year. Variable costs are $130 per unit, and fixed costs are $4,040,000. How much should Beta sell its product for per unit if the company wants to make a pretax profit of $2,260,000? (c) Capitol Enterprises sells $85,400 units in one year. The product has a contribution margin of $44, and fixed costs are $1,907,600. What is Capitol enterprises
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