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Blackmon Manufacturing Company makes a product that it sells for $50 per unit. The company incurs variable manufacturing costs of $14 per unit. Variable selling expenses are $6 per unit, annual fixed manufacturing costs are $189,000,and fixed and administrative costs are $141,000 per year.

Required

a. Determine the break-even point in units and dollars.

b. Confirm your results by preparing a contribution margin income statement for the break-even sales volume.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9976433

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