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A Company distributes a single product. The selling price is $ 70 per unit. The Company purchases the product from the supplier for $30 per unit, pays $2 per unit for shipping and incurs an additional $2 per unit in selling and administrative costs. The Company's total fixed costs are $756,000
Problem 1: Calculate Contribution Margin per unit - Number of units that need to be sold to break even - Number of units that need to be sold to earn a Pretax profit of $180,000
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