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Bowery Company manufactures a single product that sells for $100 per unit. The company projects sales of 400 units per month. Projected costs follow.
type of Cost
Manufacturing
Non-manufacturing
Variable
$10,000
$6,000
Non-variable
13,000
5,000
1. Prepare a contribution margin income statement for the month.
2. What is the contribution margin ratio?
3. What volume, in terms of units, must the company sell to break even?
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