Computing the variable cost per unit

Reference no: EM13145190

Spears Music, Inc. produces a hip-hop CD that is sold for $15. The contribution margin ratio is 40%. Fixed expenses total $6,750.

Instructions

(a) Compute the variable cost per unit.

(b) Compute how many CDs Spears Music will have to sell in order to break even.

Reference no: EM13145190

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