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ACC - Dester Manufacturing Company

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Question;Dester Manufacturing Company makes a product that it sells for $50 per unit. The company incurs variable manufacturing costs of $20 per unit. Variable selling expenses are $5 per unit, annual fixed manufacturing costs are $187,000, and fixed selling and administrative costs are $113,000 per year.;Required;Determine the break-even point in units and dollars using each of the following approaches;Equation method.;Contribution margin per unit.;Contribution margin ratio.;Confirm your results by preparing a contribution margin income statement for the break-even sales volume.

 

Paper#44526 | Written in 18-Jul-2015

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