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factory rent expense: $10,250,000 production manager saleris: $8,500,000 insurance expense: $6,000,000 equipment depreciation expense: $5,350,000 advertising expense: $5,000,000 Our team is hired by Apple to
factory rent expense: $10,250,000
Our team is hired by Apple to help assess whether or not to continue to manufacture and sell an older model of the iPhone, Apple explains that this model continues to sell well in foreign markets but it worries that fixed costs are so large that it is difficult to earn a profit. The Tableau Dashboard is provided to aid our analysis of this model. Total Fixed Costs Factory rent expense Insurance expense Equipment depreciation expense Production manager salaries Advertising expense bio Costs Per Unit 1. Compute the contribution margin per unit. Contribution margin 2. Compute the contribution margin ratio. Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio 1 0 3. Compute break-even point in sales dollars. Choose Numerator: Choose Denominator: Break-Even Dollars Break-even dollars 0 production manager saleris: $8,500,000
insurance expense: $6,000,000
equipment depreciation expense: $5,350,000
advertising expense: $5,000,000
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