A company sells one of its products for $13.80 per unit. Its fixed costs are $1,080.00per month, and the variable cost per unit is $4.80. The production capacity is 625 unitsper month.(a) The break-even volume, i.e., the level of output at break-even, isper month. (If necessary, round up to the next whole number of units.)(b) The break-even volume as a percent of capacity isyour answer to two decimal places.)units(d) The net income at the break-even level of output is $%. (If necessary, round(c) The break-even revenue, i.e., the total revenue at the break-even level of output, is$per month.

The break even sales are calculated as fixed cost divided by contribution margin ratio. The net…

Answered: A company sells one of its products for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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