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Explosion Company produces fireworks and has provided the following information:

Total fixed costs $100,000
Unit variable costs $6
Planned unit sales 30,000
The break-even point is 25,000 units.

Required:

a. Compute the selling price per unit.

b. Compute the contribution-margin ratio.

c. Compute the break-even volume in dollars.

d. Compute the margin of safety.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9408855

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