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Sandel Company makes 2 products, footballs and baseballs. Additional information follows: Units Sales Variable costs Fixed costs Net income Footballs Baseballs 2,500 $60,000 $25,000 7,000

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Sandel Company makes 2 products, footballs and baseballs. Additional information follows: Units Sales Variable costs Fixed costs Net income Footballs Baseballs 2,500 $60,000 $25,000 7,000 4,000 36,000 $15,000 Profit per unit $3.75 $3.60 Instructions Sandel has unlimited demand for both products. Therefore, which product should Sandel tell his sales people to emphasize? 4. In 2015, Stallman Co. had a break-even point of $800,000 based on a selling price of $10 per unit and fixed costs of $200,000. In 2016, the selling price and variable costs per unit did not change, but the break-even point increased to $840,000 Instructions (a) Compute the variable cost per unit and the contribution margin ratio for 2015. (b) Using the contribution margin ratio, compute the increase in fixed costs for 2016

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