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***PLEASE COMPLETE #4 ONLY*** ( Plot a breakeven chart using the foregoing figures.) UBC Company, a competitor of Howard Beal Co. in problem 13-5, has
***PLEASE COMPLETE #4 ONLY*** (Plot a breakeven chart using the foregoing figures.)
UBC Company, a competitor of Howard Beal Co. in problem 13-5, has a comparatively labor-intensive process with old equipment. Fixed costs are $10,000 per year and variable costs are $20 per unit. Sales price is the same, $28 per unit.
- What is the contribution margin of the product?
- Calculate the breakeven point in unit sales and dollars.
- What is the operating profit (loss if the company manufactures and sells
- 1,500 units per year?
- 3,000 units per year?
- Plot a breakeven chart using the foregoing figures.
- Comment on the profit and loss potential of UBC Company compared with Howard Beal Co.
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