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Problem - Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense).
Required -
Calculate the break-even pairs of shoes.
Check your answer by preparing a contribution margin income statement based on the break-even units.
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