Bruder Company Produces One Type of Product

question 148

Essay

Bruder 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 point in dollars.

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

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Definitions:

Probability Distribution

Probability distribution describes how the probabilities of various outcomes are distributed for a random variable, outlining the likelihood of different results.

Perfectly Negatively Correlated

Describes two variables that move in opposite directions consistently, such that when one increases, the other decreases by an exactly proportional amount.

Risk-Free Portfolio

An investment portfolio constructed entirely of assets deemed to have no risk of financial loss, often consisting of government securities.

Expected Rate

The anticipated rate of return on an investment, accounting for all known factors and risks.