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Beech Soda,Inc.uses a perpetual inventory system.The company's beginning inventory of a particular product and its purchases during the month of January were as follows:
On January 14,Beech Soda,Inc.sold 25 units of this product.The other 28 units remained in inventory at January 31.
-Assuming that Beech Soda uses the LIFO cost flow assumption,the 28 units of this product in inventory at January 31 have a total cost of:
Contribution Margin Ratio
A financial metric indicating the portion of sales revenue that is not consumed by variable costs, represented as a percentage of total sales.
Monthly Fixed Expense
Regular, unchanging expenses that occur on a monthly basis, such as rent or salaries, regardless of business activity levels.
Target Profit
The amount of net income a company aims to achieve for a specified period as part of its financial and operational goals.
Break-Even Sales
The amount of revenue needed to cover total fixed and variable expenses, resulting in a net profit or loss of zero.
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