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Salazar Electronics Corporation makes cell phones. Their records for the month of March are as follows: Sales 1,600 units at $500 per unit: $800,000
Salazar Electronics Corporation makes cell phones. Their records for the month of March are as follows: Sales 1,600 units at $500 per unit: $800,000 Variable Costs 1,600 units at $300 per unit: $480,000 Total monthly fixed costs: $200,000 For per unit basis: Sales price per unit $500 Variable cost per unit $300 Total units sold: 1,600 Answer the following (you are encouraged to show your working) (2 points for each part) Part A: What is the Contribution Margin? Answer in Dollars Part B: What is the Unit Contribution Margin? Answer in Dollars Part C: What is the Contribution Margin Ratio? Part D: What is the breakeven point? Answer in units or dollars Part E: If the desired profit is $120,000, what is the target unit sales volume? Part F: If sales increase by 100 units, by how much will net income increase?
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