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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
4) Determine the dollar sales needed to achieve $5 million profits
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