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! Required information [The following information applies to the questions displayed below.] Praveen Company manufactures and markets a number of rope products. Management is considering
! Required information [The following information applies to the questions displayed below.] Praveen Company manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding that has not been as profitable as planned. Because Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $320 selling price per unit. Its fixed costs for the year are expected to be $316,800. Variable costs for the year are expected to be $224 per unit. 1. Estimate Product XT's break-even point in terms of sales units and sales dollars. (Do not round intermediate calculations.) Contribution Margin per unit $ 0 Contribution margin Contribution Margin ratio Numerator: 1 Denominator: 1 = Contribution margin ratio 0 1(a) Estimate Product XT's break-even point in terms of sales units. (1 unit = 100 yards) Numerator: 1 Denominator: 1 Break-even units 0 1(b) Estimate Product XT's break-even point in terms of sales dollars. Numerator: 1 Denominator: / Break-even dollars 0
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