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Franklin Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $48. Variable costs Manufacturing 16 per unit

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Franklin Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $48. Variable costs Manufacturing 16 per unit Selling 7 per unit Fixed costs Manufacturing $156,000 per year Selling and administrative $174,000 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $185,000. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,900 units, how much could it pay in salaries for salespeople and still have a profit of $185,000? (Hint: Use the equation method.) a. Break-even point in units Break-even point in dollars b. Required sales in units Required sales in dollars C. Fixed cost of salaries

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