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Fit Express manufactures tennis balls and volleyballs. Total fixed cost for the period is $200,000. The selling price of a tennis ball is $25 per
Fit Express manufactures tennis balls and volleyballs. Total fixed cost for the period is $200,000. The selling price of a tennis ball is $25 per unit and has a variable cost of $10 per unit, and the selling price of a volleyball is $30 per unit with a variable cost of $5 per unit. The expected sales mix is two tennis balls to one volleyball. A. What is the contribution margin per unit and the contribution margin ratio for tennis balls and volleyballs? B. If Fit Express sells $10,000 tennis balls and $5,000 volleyballs, what I the operating income? (Use contribution margin income statement) C. How many tennis balls and volleyballs must be sold for Fit Express to break-even
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