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.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4BE

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