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Posted by: Homeworkhelp
Price Quoted by Student: $6
Posted On: 2011-03-14 07:07:41
 
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P10.  Cranberry Wood Products Inc. spends an average of $9.50 in labor and $12.40 in materials on

 

ANSWER KEY SOLUTION P10.  Cranberry Wood Products Inc.

 

Practical Financial Management By William Lasher 5th Edition

 

10. Cranberry Wood Products Inc. spends an average of $9.50 in labor and $12.40 in materials on every unit it sells. Sales commissions and shipping amount to another $3.10.  All other costs are fixed and add up to $140,000 per month.  The average unit sells for $32.00.

     a. What are Cranberry's contribution and contribution margin?

     b. What is the firm's breakeven point in units?

     c. Calculate the dollar breakeven point in two ways.

     d. Sketch the Breakeven Diagram. 


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ANSWER KEY SOLUTION P10.  Cranberry Wood Prod
Price $6
Attachment 1: P10 Cranberry Wood Products Inc.doc
Solution Posted By: Homeworkhelp    Posted on: 14-03-2011