FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Cost-Volume Profit Analysis
Incline Company generated $4,200,000 in revenue selling 3,600 units of its only product. Each unit has a contribution margin of $280. The company has fixed costs
of $125/unit at the current production volume (assume unit production volume equals unit sales volume).
a. What is the contribution margin ratio for Incline's product?
b. Calculate the break-even point in revenue for Incline?
$
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Transcribed Image Text:Cost-Volume Profit Analysis Incline Company generated $4,200,000 in revenue selling 3,600 units of its only product. Each unit has a contribution margin of $280. The company has fixed costs of $125/unit at the current production volume (assume unit production volume equals unit sales volume). a. What is the contribution margin ratio for Incline's product? b. Calculate the break-even point in revenue for Incline? $
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