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Thornton Company incurs annual fixed costs of $56,550. Variable costs for Thorntons product are $31.50 per unit, and the sales price is $45.00 per unit.

Thornton Company incurs annual fixed costs of $56,550. Variable costs for Thorntons product are $31.50 per unit, and the sales price is $45.00 per unit. Thornton desires to earn an annual profit of $60,000.

Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit.

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