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ID: 2469296 • Letter: S

Question

Safari File Edit View History Bookmarks Window Help ezto.mheducation.com Yahoo iphone studies dress shoe llbean restauraunts ie313 transfer blanket math accounting vans MyUW 4145 Wisc mail YouTube News Popular Google Aol ESPN CA #30 Chegg Study Guided Solutions and Study Help | Chegg.com 2.00 points and (1).pdf Probabili Statistic...S 1. Estimate Product XT's break-even point in terms of sales units and sales dollars. (1 unit = 100 yards.) (Do not round intermediate calculations.) Contribution margin per 100 yds ord for du.pdf Contribution margin Contribution margin ratio Choose Numerator: I Choose Denominator Contribution margin ratio Contribution margin ratio ack 1(a) Estimate Product XT's break-even point in terms of sales units. (1 unit 100 yards) Choose Numerator: 1 Choose Denominator: Break-even units Break-even units ure ion 1(b) Estimate Product XT's break-even point in terms of sales dollars 315 tes Choose Numerator: I Choose Denominator Break-even dollars Break-even dollars labus Oc 315 project untitled fol 1460 APR 1

Explanation / Answer

Contribution Margin per 100 yards

= Sales Price- Variable cost

=$300-$240

=$60

Contribution Margin Ratio

= Contribution/ Sales Price

=60/300

=20%

Break even units

= Fixed Cost/ Contribution per unit

=$210,000/60

=3,500 units

Break even point in Dollars

= Fixed Cost/ Contribution margin ratio

=$210,000/20%

=$1,050,000

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