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Raven IncSells a Single Product for $45

question 109

Essay

Raven Inc.sells a single product for $45.Variable costs include $26 for each unit plus a $10 selling expense per unit.Fixed costs are $200,000 per month.
a.What is the contribution margin percentage?
b.What is the breakeven sales revenue?
c.What sales revenue is needed to achieve a $175,000 per month profit?


Definitions:

Managerial Control

The process by which management ensures that resources are obtained and used effectively and efficiently in the accomplishment of an organization's objectives.

Resent

To feel bitterness or indignation at having been treated unfairly.

No Deviation

A principle in strategies or plans that emphasizes adherence to set plans without alterations.

Actual Performance

Refers to the real, observed outcomes or results achieved by an individual, team, or organization, as opposed to projected or expected performance.

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