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Question #10 business finance book:practical financial management:Lasher chapter 14 10. Cranberry Wood Products Inc. spends an average of $9.50 in labor and $12.40 in materials
Question #10 business finance book:practical financial management:Lasher chapter 14
10. Cranberry Wood Products Inc. spends an average of $9.50 in labor and $12.40 in materials on ev ery unit it sells. Sales commissions and shipping amount to another $3.10. All other costs are fized and add up to $140,000 per month. The average unit sells for $32.00. a. What are Cranberry's contribution and contribution margin? b. What is the firm's breakeven point in units? c. Calculate the dollar breakeven point in two ways. d. Sketch the breakeven diagramStep by Step Solution
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