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Superior Door Company sells pre-hung doors to home builders. The doors are sold for $60 each. Variable costs are $42 per door and fixed costs total $450,000 per year. The company is currently selling 30,000 doors per year.1. What are the variable expenses per unit?2. Using the equation method:A. What is the break-even point in units and in sales dollars?B. What sales level in units and in sales dollars is required to earn an annual profit of $90,000?C. Assume that through negotiations with the manufacturer the Super Sales Company is able to reduce it's variable expenses by $3 per unit.What is the company's new break-even point in units and in sales dollars?
3. Repeat question 2 using the formula method.
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This is the income received but not earned throughout the accounting period. Conversely, this is the income for those services are to be rendered in future. Such income is deducted
CONTRIBUTION : It is the variation between the marginal cost of sales and sales and it contributes towards fixed profit and expenses. It is differ from the profit which is the net
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