Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 3 - Cost-Volume-Profit Analysis - Assignment Material - Exercises - Page 95: 3-24(2)

Answer

Selling Price = $7.33 + $13 Selling Price = 20.33 per unit

Work Step by Step

Contribution Margin = Selling Price - Variable Costs Selling Price = Contribution Margin + Variable Costs Given Variable Costs = 13 per unit, the breakeven point is 90,000 units: Selling Price = (1,500,000 - 780,000) / 90,000 + 13
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