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Kennett Company manufactures and sells a single product. Sales peak in March and generally bottom out in October. The following cost and volume information were
Kennett Company manufactures and sells a single product. Sales peak in March and generally bottom out in October. The following cost and volume information were extracted from accounting records. * An average month. The company's product sells for $9.00 per unit. You are required to: a. Using the high-low method, compute Kennett's variable cost per unit and total monthly fixed cost. b. Compute the firm's contribution margin per unit. c. Determine the break-even point in units and dollar sales (using contribution margin ratio). d. Determine the sales volume (in units) required to generate a target income of $29,150 per month
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