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Question: Mabel Co manufactures and sells tables and chairs in a standard mix of one table to four chairs. The following information is available:Product Table Chair
Variable cost per unit ($) 120 16
Contribution to sales ratio 0.4 0.6
Annual fixed costs are $100,000.
What is the breakeven point in sales revenue (to the nearest hundred dollars)?
If total fixed costs and increases the variable cost per unit, the total cost line relative to its previous position on a cost-volume-profit graph will
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