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Sokolov Company sells a product for $12. Unit costs are as follows:Direct materials $1.90Direct labor 2.85Variable overhead 1.25Variable selling expenses 2.00Total fixed overhead is $44,000 per year, and total fixed selling and administrative expenses are $37,900.
Required
1. Calculate the contribution margin per unit2. Calculate the break-even units.3. How many units must Sokolov produce and sell to earn operating income of $9,000?4. Prepare an income statement for your answer in requirement 3.
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