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Exercise 3.26 Indigo Company manufactures a single product. Indigo normally produces and sells 470 units per month at $112 each. The company's income tax rate
Exercise 3.26 Indigo Company manufactures a single product. Indigo normally produces and sells 470 units per month at $112 each. The company's income tax rate is 29%. Estimated monthly costs are as follows: Variable Fixed Manufacturing $9,870 10,340 Nonmanufactuing $5,170 6,110 Your answer is correct. What is the contribution margin per unit? Contribution margin per unit 80 SHOW SOLUTION SHOW ANSWER LINK TO TEXT x Your answer is incorrect. Try again. What is the contribution margin ratio? (Round to 2 decimal places, e.g. 17.54%.) X Contribution margin ratio 71.43% % LINK TO TEXT Your answer is correct. How many units must Indigo sell to break even? (Round answer to nearest whole units, e.g. 125.) Breakeven point 206 wnits Your answer is correct. How many units must Indigo sell to break even? (Round answer to nearest whole units, e.g. 125.) Breakeven point 206 units SHOW SOLUTION SHOW ANSWER LINK TO TEXT x Your answer is incorrect. Try again. If the company desires an after-tax profit of 19% on the selling price, what is the equivalent pretax return on sales? (Round intermediate calculations to 4 decimal places, e.g. 15.1679 and final answer to 0 decimal places, e.g. 5,125.) Pretax return LINK TO TEXT
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