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Break-Even Point and Target Profit Measured in Units (Single Product).
Nellie Company has monthly fixed costs totaling $100,000 and variable costs of $20 per unit. Each unit of product is sold for $25.
Required:
Question 1: Calculate the contribution margin per unit.
Question 2: Find the break-even point in units.
Question 3: How many units must be sold to earn a monthly profit of $40,000?
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