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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.
WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS
The Critical Thinking about CVP is described below CVP is more than just a mathematical tool/device to calculate values such as the break-even point. It can be used for the cri
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