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Question - You have been provided with the following information regarding the Closure Manufacturing Company:
Sales price $50
Variable manufacturing costs per unit 24
Fixed manufacturing costs per unit 12
Variable marketing costs per unit 6
Fixed administrative costs per unit 3
This information is based on forecasted sales of 33,000 units.
Required -
(a) What is the expected operating profit for the upcoming year?
(b) What is the break-even point in dollars?
(c) How much in sales dollars is required to generate an operating profit of $275,000?
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