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Exercise 3-1A (Algo) Equation method LO 3-1 Vernon Corporation produces products that it sells for $18 each. Variable costs per unit are $4, and annual
Exercise 3-1A (Algo) Equation method LO 3-1
Vernon Corporation produces products that it sells for $18 each. Variable costs per unit are $4, and annual fixed costs are $282,800. Vernon desires to earn a profit of $50,400.
Required
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Use the equation method to determine the break-even point in units and dollars.
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Determine the sales volume in units and dollars required to earn the desired profit.
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