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Suzy Manufacturing has estimated monthly sales of 18,000 units for $48 per unit. Variable costs include manufacturing costs of $27 and distribution costs of $9. Fixed costs are $60,000 per month.

Required

Determine each of the following values.

a. Unit contribution margin

Monthly break-even unit sales volume
Before-tax monthly profit
Monthly margin of safety in units
Create a contribution margin-based income statement.

 

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