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VII. Break-even analysis, different cost structures, and income calculations Letter Co. produces and sells two products, T and O. It manufactures these products in separate

VII. Break-even analysis, different cost structures, and income calculations Letter Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 50,000 units of each product. Sales and costs for each product follow. Product T Product O Sales. $800,000 $800,000 Variable costs... 560,000 100,000 Contribution margin. 240,000 700,000 Fixed costs 100,000 560,000 Income before taxes. 140,000 140,000 Income taxes (32% rate).. 44,800 44,800 Net income... $ 95,200 $ 95,200 1. Compute the break-even point in dollar sales for each product

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