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Question 1: Contribution Margin 15 points Jalloh sells only one product below are the relevant information of the company Selling price is $105.00 per unit
Question 1: Contribution Margin 15 points Jalloh sells only one product below are the relevant information of the company Selling price is $105.00 per unit Contribution Margin 40% Fixed costs are $20,000 per month. Management increases the selling price to $120 per unit. Assume that the cost of the product and the fixed operating expenses are not changed by this pricing decision. 1 Refer to the above data. At the original selling price of $105 per unit, what is the variable cost per unit? 2 Refer to the above data. At the original selling price of $105 per unit, how many units must Jalloh sell to break even? 3 Refer to the above data. At the original selling price of $105 per unit, what dollar volume of sales per month is required for Jalloh to earn a monthly operating income of $40,000? 4 Refer to the above data. At the increased selling price of $120 per unit, what is the contribution margin ratio? 5 Refer to the above data. At the increased selling price of $120 per unit, what dollar volume of sales per month is required to break even? (Round to whole number)
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