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Riveria Co. makes and sells a single product. The current selling price is $39 per unit. Variable expenses are $16 per unit, and fixed expenses
Riveria Co. makes and sells a single product. The current selling price is $39 per unit. Variable expenses are $16 per unit, and fixed expenses total $37,000 per month. Sales volume for May totaled 4,560 units. Required: a. Calculate operating income for May. b. Calculate the break-even point in terms of units sold and total revenues. (Round your intermediate calculations to the nearest whole dollar.) Break-even volume Break-even revenues c Management is considering installing automated equipment o reduce direct labor cost. f this were done, varable expenses would dropto st per unit, bu fixe expenses would ncrea to ermen . c-1. Calculate operating income at a volume of 4,560 units per month with the new cost structure. c-2. Calculate the break-even point in units with the new oost structure. -even volume
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