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Calculate the unit contribution margin

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Reference no: EM13147736

Drake Company's income statement for the most recent year appears below:

Sales (26,000 units) $650,000

Less: Variable expenses 442,000

Contribution margin 208,000

Less: Fixed expenses 234,000

Net operating loss $(26,000)

Required:

a. Calculate the unit contribution margin

b. Calculate the break-even point in dollars

c. If the company desires a net operating income of $20,000, how many units must it sell?

Reference no: EM13147736

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