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Questions 10 12 utilize the following information regarding a product manufactured and sold by Skiffs Co. is shown below: Maximum capacity with existing facilities 6,000

Questions 10 12 utilize the following information regarding a product manufactured and sold by Skiffs Co. is shown below: Maximum capacity with existing facilities 6,000 units

Total fixed costs per month ............................................................... $100,000

Variable cost per unit......................................................................... $85.00

Sales price per unit............................................................................. $125.00

10. The contribution margin ratio for this product is: A. 20%. C. 30%. B. 25%. D. 32%.

11. The number of units Skiffs Co. must sell to break even is: (rounded) A. 3,927. C. 3,000. B. 3,572. D. 2,500.

12. The dollar sales volume necessary to produce monthly operating income of $28,000 before taxes is: A. $375,000. C. $410,000. B. $400,000. D. $428,000.

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