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Pavillon company produced only one product during the month of November, sold for 850 per unit. The company's cost information is given below: The income
Pavillon company produced only one product during the month of November, sold for 850 per unit. The company's cost information is given below: The income statements in absorption costing for the month of November is: The stock is empty at the beginning of the month. Pavillon uses the weighted average cost (WAC) method to calculate the value of its stock of finished products. 1. What is the break-even point of Pavillon in quantity and value ()? 2. What is the quantity produced in November? 3. What is the contribution margin (in ) in November if the company uses the direct costing method? 4. What is the profit (in ) for November if the company uses the direct costing method? 5. Explain the difference in profit between the direct costing method and the absorption costing method. Support your answer with calculation
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