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Lucent Manufacturing Company makes a product that it sells for $75 per unit. The company incurs variable manufacturing costs of $30 per unit. Variable selling
Lucent Manufacturing Company makes a product that it sells for $75 per unit. The company incurs variable manufacturing costs of $30 per unit. Variable selling expenses are $9 per unit, annual fixed manufacturing costs are $240,000, and fixed selling and administrative costs are $165,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Equation method. Break-even point in units Break-even point in dollars b. Contribution margin per unit. Contribution margin per unit Break-even point in units Break-even point in dollars LUCENT MANUFACTURING COMPANY Contribution Margin Income Statement
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