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Question - Sarah Allen owns and operates Blossom, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $56 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows:
Sales revenue $944,720
Variable expenses 708,540
Contribution margin 236,180
Fixed expenses 123,620
Operating income $112,560
Required -
What is Blossom's contribution margin per unit?
What is Blossom's monthly breakeven point in units?
What is Blossom's contribution margin ratio?
What is Blossom's monthly breakeven point in sales dollars?
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