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Calculate the contribution margin per hand painted lamp

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Question - North Sydney Ltd sells hand painted lamps at an average price per unit of $70. Variable manufacturing costs are estimated to be $30 per unit. Fixed costs are expected to amount to $160,000 per year.

Required -

1. Calculate the contribution margin per hand painted lamp.

2. Calculate the contribution margin ratio per hand painted lamp.

3. Calculate the break-even point in sales dollars.

4. If the company's fixed costs reduce what will happen to the break-even point calculated above in (3)?

Reference no: EM133029481

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