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Blue Co. had the following income statement in February:
Sales $150,000
Costs 170,000
Loss ($20,000)
The firm's contribution margin ratio at its current selling price of $20 per unit is 40%.
Question A. What is the firm's break-even point in sales dollars?
Question B. What is the firm's break-even point in units?
Question C. What are the total costs if it sells 8,000 units?
Raider-X Company forecasts sales of 18,000 units for April. Beginning inventory is 3,000 units.
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