To pay for his academic​ fees, Tarek, a college​ student, is selling a computer accessory to other students. His cost to purchase each piece is ​$70​, and he is planning to sell the accessories for $104 each. Fixed costs for advertising amount to ​$350.   ​(a)  Compute the contribution margin. ​(b)  Compute the contribution rate. ​(c)  Compute the​ break-even point in units. ​(d)  Compute the​ break-even point in sales dollars

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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To pay for his academic​ fees, Tarek, a college​ student, is selling a computer accessory to other students. His cost to purchase each piece is ​$70​, and he is planning to sell the accessories for $104
each. Fixed costs for advertising amount to ​$350.
 
​(a)  Compute the contribution margin.
​(b)  Compute the contribution rate.
​(c)  Compute the​ break-even point in units.
​(d)  Compute the​ break-even point in sales dollars.
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