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Prepare a contribution margin income statement

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Reference no: EM132452644

The following data is available for Milford Vinegar Co:

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Requirements:

Question 1. Prepare a contribution margin income statement for each level of production, include per unit detail.

Question 2. Assuming that the company will sell all output - At what level is profit maximized?

Question 3. Calculate the break even point in dollar sales and units for each level of production

Question 4. Analyze the pricing schedule that Milford is using - Why might Milford offer a lower customer price at higher production levels?

Question 5. Management believes that by dropping the price to $10.50 per bottle and paying their sales staff a commission of 50 cents per bottle it can sell 24,000 bottles - Do you recommend this approach? Provide proof/support for your answer Explain what the management should be considering in making this decision?

Reference no: EM132452644

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