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Home Q & A Board Other Fields Homework Help Business Accounting
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omaralnatour omaralnatour
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2 months ago
Bivouac Camping Supply sells marine-grade hatches. The hatches sell for $20 each. The cost of each hatch is $12. The only other costs are fixed costs of $15,000. During the current period, Bivouac sold 2,400 units.

Required:

a.What is the contribution margin per unit?
b.What is the contribution margin ratio?
c.What is the break-even point in units? In dollars?
d.What is the margin of safety in units? In dollars?
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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silvermoon197silvermoon197
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2 months ago
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More solutions for this book are available here
a.($20 - $12) = $8
b.$8 ÷ $20 = 40%
c.$15,000 ÷ $8 = 1,875 units; 1,875 × $20 = $37,500 or $15,000 ÷ 40% = $37,500
d.2,400 - 1875 = 525 units; $48,000 - $37,500 = $10,500
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Helped a lot
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this is exactly what I needed
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You make an excellent tutor!
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