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Geraldo Inc. sells several products. Information of average revenue and costs is as follows:
Selling price per unit $32.00
Variable costs per unit:
Direct material $4.25
Direct manufacturing labour $2.15
Manufacturing overhead $1.64
Selling costs $1.85
Annual fixed costs $110,000
Problem 1: The Geraldo Inc. contribution margin ratio is
Problem 2: The Geraldo Inc. break-even point in sales dollars is
a. $159,200.
b. $159,203.
c. $159,204.
d. $159,203.97.
e. $159,232.
Problem 3: The Geraldo Inc. break-even point in units is
a. 4,975 units.
b. 4,976 units.
c. 4,990 units.
d. 4,991 units.
e. 4,472 units.
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