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Inman Manufacturing Company makes a product that it sells for S60 per unit. The company incurs variable manufacturing costs of $24 per unit. Variable
Inman Manufacturing Company makes a product that it sells for S60 per unit. The company incurs variable manufacturing costs of $24 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $189,000, and fixed selling and administrative costs are S141,OOO per year. Required Determine the break-even point in units and dollars using the following approaches. a. b. c. d. Equation method. Contribution margin per unit. Contribution margin ratio. Confirm your results by preparing a contribution margin income statement for the breakeven sales volume.
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