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Tim Taylor has written a self improvement book that has the following cost characteristics:
Selling Price $16.00 per book
Variable cost per unit:
Production $4.00
Selling & administrative 2.00
Fixed costs:
Production $97,200 per year
Selling & administrative22,200 per year
Problem 1: How many units must be sold to break-even?
Martinez Company’s relevant range of production is 10,100 units to 15,100 units. When it produces and sells 12,600 units, its unit costs are as follows: Amount Per Unit Direct materials $ 5.90 Direct labor $ 3.40 Variable manufacturing overhead $ 1.6..
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