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Example: Suppose JC company sells a product for $30.00 that has a fixed cost of $792,000 and a variable cost of $6.00. Find a BE

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Example: Suppose JC company sells a product for $30.00 that has a fixed cost of $792,000 and a variable cost of $6.00. Find a BE point in units. BE quantity in units =FC/P-VC. Now we can set it up as 792,000/306=792,000/24=33,000 units. At 33,000 units of BE point, TR=33,000$30=$990,000. At 33,000 units of BE point, TC =$792,000+($633,000)$990,000. See TR =TC as I have lectured. Part C. Problems 1. JC company sells a product for $20.00 which has a variable cost of $6 and fixed costs of $792,000. a. Find the contribution margin $ for the product JC company sells based on the information in the problem and contribution margin % \%. Show your work in detail. b. Suppose the variable cost has been increased to $7 because of inflation. What will be the contribution margin % % in the problem with all other factors remaining the same? Show your work. 2. Total Man company has developed a cologne that has a unit variable cost of $0.45 for a threeounce bottle and a total fixed cost of $900,000. The company plans to sell each bottle for $7.50. a. Find out how many bottles the company needs to sell to break even. Must show the work. b. Compute the TR at the BE point. $. Show the work. c. Compute the TC at the BE point. $. Show the work

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