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Stuart Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $51. Required a. Use the per-unit contribution
Stuart Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $51. 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 $283,500. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,700 units how much could it pay in salaries for salespeople and still have a profit of $283,500 ? (Hint: Use the equation method)
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