FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Cost-Volume Profit Analysis
Incline Company generated $3,500,000 in revenue selling 2,750 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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