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Rundle Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $49 Variable costs Manufacturing Selling 16 per
Rundle Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $49 Variable costs Manufacturing Selling 16 per unit 7 per unit Fixed cost Manufacturing Selling and administrative $163,000 per year $180,200 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $182,000 C. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 20,700 units how much could it pay in salaries for salespeople and still have a profit of $182,000? (Hint: Use the equation method.) 13,200 Break-even point in dollars$646,800 20,200 $989,800 a. Break-even point in units b. Required sales in units Required sales in dollars c. Fixed cost of salaries
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