Business, 04.10.2020 07:01 cocobelle

Basic Break-Even Calculations Suppose that Larimer Company sells a product for $24. Unit costs are as follows: Direct materials $4.98 Direct labor 2.10 Variable factory overhead 1.00 Variable selling and administrative expense 2.00 Total fixed factory overhead is $26,500 per year, and total fixed selling and administrative expense is $15,260. Required: 1. Calculate the variable cost per unit and the contribution margin per unit. 2. Calculate the contribution margin ratio and the variable cost ratio. 3. Calculate the break-even units. 4. Prepare a contribution margin income statement at the break-even number of units. Enter all amounts as positive numbers.

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Basic Break-Even Calculations Suppose that Larimer Company sells a product for $24. Unit costs are a...

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