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Crouch Corp. manufactures and markets various mountaineering products. Crouch Corp.'s managers are looking at the future of Product XYZ, which has not been as profitable
Crouch Corp. manufactures and markets various mountaineering products. Crouch Corp.'s managers are looking at the future of Product XYZ, which has not been as profitable as anticipated. Next year, the company plans to sell 1,500 units of Product XYZ at a price of $220 each. The xed costs are projected to be $225,000, for up to a maximum capacity of 4,500 units of Product XYZ for the y Variable costs are projected to be $95 per unit. Calculate Product XYZ's break-even point in: . Sales units . Sales dollars Round the contribution margin ratio and the break-even point to two decimal places. (a) Break-even point in sales units = Fixed costs / Contribution margin per unit
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