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Question - Using the data in the contribution margin income statement for Sedona, Inc., that appears at the top of the next page, calculate (1) selling price per unit, (2) variable costs per unit, and (3) breakeven point in units and in sales dollars.
Sedona, Inc. Contribution Margin Income Statement For the Year Ended December 31 Sales
Sales (20,000 units)
$16,000,000
Less variable costs
Cost of goods sold
$8,000,000
Selling, administrative, and general
4,000,000
Total variable costs
12,000,000
Contribution margin
$4,000,000
Less fixed costs
Overhead
$1,200,000
800,000
Total fixed costs
2,000,000
Operating income
$2,000,000
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