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1. What is the variable cost per unit (rounded to the nearest penny)?

2. What are the total fixed costs?

3. Prepare a contribution margin income statement for the company. What is the company"s current net income? The marketing manager predicts the company can increase sales by 20% if it reduces the selling price by 5% and upgrades the packaging; the improved packaging would increase that cost by 50 percent. If the company makes the change, what is its projected net income?

4. What is the break-even point in units (rounded to the nearest whole unit)?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9442442

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