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LittlePiggie produces sports socks. The company has fixed expenses of $80,000 and variable expenses of $1.20 per package. Each package sells for $2.50. Requirements Compute the contribution 1. margin per package and the contribution margin ratio. 2. Find the break-even point in units and in dollars using the contribution margin shortcut approaches. Find the number of packages

LittlePiggie produces sports socks. The company has fixed expenses of $80,000 and variable expenses of $1.20 per package. Each package sells for $2.50. Requirements Compute the contribution 1. margin per package and the contribution margin ratio. 2. Find the break-even point in units and in dollars using the contribution margin shortcut approaches. Find the number of packages

FINANCIAL ACCOUNTING
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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Little Piggie produces sports socks. The company has fixed expenses of $80,000 and variable expenses of $1.20 per package. Each package sells for $2.50. Requirements Compute the contribution 1. margin per package and the contribution margin ratio. 2. 3. Find the break-even point in units and in dollars using the contribution margin shortcut approaches. Find the number of packages Little Piggie needs to sell to earn a $25,000 operating income.
Transcribed Image Text:Little Piggie produces sports socks. The company has fixed expenses of $80,000 and variable expenses of $1.20 per package. Each package sells for $2.50. Requirements Compute the contribution 1. margin per package and the contribution margin ratio. 2. 3. Find the break-even point in units and in dollars using the contribution margin shortcut approaches. Find the number of packages Little Piggie needs to sell to earn a $25,000 operating income.
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