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EXERCISE 1: BREAK-EVEN POINT IN UNITS AND IN REVENUE For this exercise, use the following information: Total fixed costs are estimated at $100,000. Total units

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EXERCISE 1: BREAK-EVEN POINT IN UNITS AND IN REVENUE For this exercise, use the following information: Total fixed costs are estimated at $100,000. Total units expected to be sold are 50.000 Taual variable costs are $300,000. Unit selling price is $8.00. Calculate the following: VCU = ? 300,000/50000 = $6 1. Break-even point in units 50000 2. Break-even point revenue EXERCISE 2: CONTRIBUTION MARGIN, PV RATIO, AND BREAK-EVEN POINT A company expects to sell 75,000 widgets at a price of $10.00. The unit variable costs are estimated at $8.00, and the fixed costs are estimated at $125,000. On the basis of this information, calculate the following: 1. Contribution margin 2. PV ratio 3. Revenue break-even by using the PV ratio 4. Profit generated EXERCISE 3: BREAK-EVEN POINT IN UNITS AND IN REVENUE Using the information in Exercise 1, if rent were increased by $25,000 and variable costs and unit selling price remained unchanged, what would be the new PV ratio and break-even point in units and in revenue

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