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Rubber and Steel Company is planning to manufacture a new product. The variable manufacturing costs will be $55 per unit and the fixed costs are
Rubber and Steel Company is planning to manufacture a new product. The variable manufacturing costs will be $55 per unit and the fixed costs are estimated to be $6048. The selling price of the product is to be $127 per unit. Variable selling expense is expected to be $18 per unit.
(a) Calculate the contribution margin per unit.
(b) Determine the contribution rate.
(c) Calculate thebreak-even point in units.
(d) Determine thebreak-even point in sales dollar
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