Munoz Manufacturing Company reported the following data regarding a product it manufactures and sells. The...
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Accounting
Munoz Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $46.
Required
Use the per-unit contribution margin approach to determine the break-even point in units and dollars.
Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $182,500.
Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,600 units, how much could it pay in salaries for salespeople and still have a profit of $182,500? (Hint: Use the equation method.)
Variable costs Manufacturing Selling 16 per unit 5 per unit Fixed costs Manufacturing Selling and administrative $164,000 per year $138,500 per year a. Break-even point in units reak-even point in dollars b. Required sales in units Required sales in dollars C. Fixed cost of salaries
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