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Question - Contribution margin, unit level costs - Bodacious Beats makes high-end headphones. At a volume of 15,000 units (headphones), per-unit price and cost data for the year just ended follow:
Item Amount per unit
Selling price $800
Variable manufacturing cost $440
Fixed manufacturing overhead $50
Gross margin $310
Variable selling cost $40
Fixed selling and administrative cost $110
Profit $160
Required - How many units (headphones) does Bodacious Beats need to sell each year to break even?
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