GEM Company has a unit selling price of $790, variable costs per unit of $545, and fixed costs of $285,000. Compute the break-even point in units using (a) the mathematical equation and (b) the unit contribution margin.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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GEM Company has a unit selling price of $790,
variable costs per unit of $545, and fixed costs of
$285,000.
Compute the break-even point in units using
(a) the mathematical equation and
(b) the unit contribution margin.
Transcribed Image Text:GEM Company has a unit selling price of $790, variable costs per unit of $545, and fixed costs of $285,000. Compute the break-even point in units using (a) the mathematical equation and (b) the unit contribution margin.
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