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Springhill Company prepared the following projected income statement:
Sales (5,000 units @ $12 each) $60,000
Less: Variable Costs 45,000
Fixed Costs 6,900 51,900
Operating Income $ 8,100
Question a. Calculate unit variable cost
Question b. Calculate breakeven number of units
Question c. Calculate the contribution margin ratio
Question d. Calculate breakeven revenue
Question e. If Springhill wants to make a profit of $20,000, what revenue must it earn to do so?
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