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Requirements:
Question 1: Calculate the break-even point in units and dollars
Question 2: Plot a Break-Even Chart
Total Per Unit Percentage
Sales (1000 units) $50,000 $50 100%
Less: Variable costs 20,000 20 40%
Contribution Margin 30,000 30 60%
Less: Fixed costs 25,000
Net Income5,000
Purpose of Product Costing in a Process Production Environment All product costing uses averages to determine costs per unit of product produced.
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