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dxpayne dxpayne
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6 years ago
Berhannan's Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500.

Required:
a.   What is the contribution margin per phone?
b.   What is the break-even point in phones?
c.   How many phones must be sold to earn pre-tax income of $7,500?
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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GarretAGarretA
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6 years ago
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