The Following Information Describes a Product Expected to Be Produced

question 106

Essay

The following information describes a product expected to be produced and sold by Quark Corporation:
$\begin{array}{llr} \text { Selling price} & \text {\$ 33 per unit } \\ \text {Variable costs } & \text { \$ 27 per unit } \\ \text { Total Fixed costs } & \text {\$ 855,000 per year } \end{array}$

Required:
(a) Calculate the contribution margin per unit.
(b) Calculate the break-even point in units.

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Definitions:

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