Explosion Company Produces One Type of Product

question 27

Essay

Explosion Company produces one type of product.Total fixed costs are $100,000.Unit variable costs are $6.00.The break-even point is 25,000 units.Planned unit sales are 30,000.
Required:
A)Compute the selling price per unit.
B)Compute the contribution-margin ratio.
C)Compute the break-even volume in dollars.

• A)Compute the selling price per unit.
• B)Compute the contribution-margin ratio.
• C)Compute the break-even volume in dollars.

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Definitions:

Perceptions

The process of organizing, interpreting, and understanding sensory information.

Aversive Conditioning

A behavioral training technique where an undesirable behavior is paired with an unpleasant stimulus to reduce the behavior.

Unpleasant Event

An undesirable or negative occurrence that often leads to emotional discomfort or distress.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses or anxiety by gradual exposure to the feared object or situation in conjunction with relaxation exercises.