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How the level of activity at break-even point are determined

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1. Total fixed costs are $26,000 for Daz Inc. It has a con- tribution margin per unit of $15, and a contribution margin ratio of 25%. Compute the break-even sales in dollars.

2. Peggy Turnbull asks your help in constructing a CVP graph. Explain to Peggy (a) how the break-even point is plotted, and (b) how the level of activity and dollar sales at the break-even point are determined.

Reference no: EM13889304

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