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Problem - Break-Even Sales and Target Profit - DeHan Company, a sporting goods manufacturer, sells binoculars for $140 per unit. The variable cost is $100 per unit, while the fixed costs are $1,200,000.
Required -
a. Compute the anticipated break-even sales (units) for binoculars.
b. Compute the sales (units) for binoculars required to realize target operating income of $400,000.
c. Construct a cost-volume-profit chart for the anticipated break-even sales for binoculars.
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