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he information that follows was obtained from the accounting records of Portofino Manufacturing during a period when the company sold 104,000 units. Sales revenue $
he information that follows was obtained from the accounting records of Portofino Manufacturing during a period when the company sold 104,000 units.
Sales revenue | $ | 9,360,000 | |
Variable costs | 3,016,000 | ||
Fixed costs | 5,856,000 | ||
Required:
- Compute the company's per-unit contribution margin and break-even point in units.
- How many units must Portofino sell to produce a target profit of $549,000?
- Assume that Portofino was able to reduce the variable cost per unit by $5. What selling price could management charge if it desired to maintain the current break-even point?
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