X company costs $21,250,000 to produce 10,000 units of a certain product and $23,125,000 to produce 25,000 units Required 1) Calculate both the fixed cost and variable cost. 2) Determine the breakeven point sales if you know that the price is $168 per unit. 3) Calculate the variable margin rate and mention its importance to you as marketing manager.
X company costs $21,250,000 to produce 10,000 units of a certain product and $23,125,000 to produce 25,000 units Required 1) Calculate both the fixed cost and variable cost. 2) Determine the breakeven point sales if you know that the price is $168 per unit. 3) Calculate the variable margin rate and mention its importance to you as marketing manager.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...
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