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La Tour Eiffel Manufacturing Company produces souvenirs for tourists visiting Paris. The company's total fixed costs are 50,000 per month, and its variable cost per

La Tour Eiffel Manufacturing Company produces souvenirs for tourists visiting Paris. The company's total fixed costs are €50,000 per month, and its variable cost per unit is €5. The selling price per unit is €15.

a) Determine the company's breakeven point in units and sales revenue.

b) Calculate the contribution margin ratio and explain its significance.

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