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Compute the companys cm ratio and its break-even point

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Capstone, INC, produces memory enhancement kits for tax machines. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company's contribution format income statement for the most recent month is given below:

Sales (13,500 unit's X at $20 per unit ..................................... $270,000

Variables expenses ................................................................$189,000

Contribution margin ...............................................................$81,000

Fixed expenses .....................................................................$90,000

Net operating loss .................................................................($9,000)

Required:

1. Compute the company's CM ratio and its break-even point in both units and dollars.

Reference no: EM131819664

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