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Please help solve. Thank you much. Name SID & No PROBLEM 3 Kenton Company produces only one product. Normal capacity is 80,000 units per year,
Please help solve. Thank you much.
Name SID & No PROBLEM 3 Kenton Company produces only one product. Normal capacity is 80,000 units per year, and the unit sales price is $20. Relevant costs are: Materials Direct labor Factory overhead Marketing expenses Administrative expenses Unit Variable Cost Total Fixed Cost $4.00 $4.80 $2.00 $60,000 $1.20 $20,000 $24,000 Required: Compute the following: (1) The break-even point in units of product (2) The break-even point in dollars of sales (3) The number of units of product that must be produced and sold to achieve a profit of $40,000 (4) The sales revenue required to achieve a profit of $40,000Step by Step Solution
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