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Question 2. cvp Serendipity Sound, lnc manufactures and sells compact discs. Price and cost data are as follows: Selling price per unit (package of
Question 2. cvp Serendipity Sound, lnc manufactures and sells compact discs. Price and cost data are as follows: Selling price per unit (package of two discs) Variable costs per unit: Direct material Direct labor Manufacturing overhead Selling expenses Total Variable costs per unit Annual fixed costs: Manufacturing overhead Selling and administrative Total fixed costs Forecasted annual sales volume Required: What is Serendipity Sound's break-even point in units? $25.00 $10.50 sooo $3.00 $1.30 $19.80 $192,000 $276,000 $468,000 What is the company's break-even point in sales dollars? How many units must be sold to earn $260,000? What is the firm's margin ot satety (using forecasted annual sales volume)? It direct labor costs increase 8% next year, what will be the new break-even in units?
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