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Using the data in the contribution margin income statement for Broadway, Inc., that follows, calculate (a) selling price per unit, (b) variable costs per unit, and (c) break- even point in units and in sales dollars.
Broadway, Inc.
Contribution Margin Income statement For the year ended December 31
Sales (20,000 units) Less variable costs:
Cost of goods sold
$8,000,000
$16,000,000
Selling, administrative, and general
4,000,000
Total variable costs
12,000,000
Contribution margin Less fixed costs:
Overhead
$1,200,000
$ 4,000,000
800,000
Total fixed costs
2,000,000
Operating income
$ 2,000,000
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