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Cranberry Wood Products Inc. spends an average of $9.30 in labor and $12.60 in materials on every unit it sells. Sales commissions and shipping amount to another $3.10. All other costs are fixed and add up to $136,000 per month. The average unit sells for $32.00.
Problem 1: What is Cranberry's contribution?
Problem 2: What is Cranberry's contribution margin?
Problem 3: What is the ?rm's breakeven point in units?
Problem 4: Calculate the dollar breakeven point.
How do the principles for amortisation of intangible assets differ from those for depreciation of property? What is meant by identifiability
manufacturing overhead cost is allocated to Product Y and Product Z.
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