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Clock Company sells a single product. The companys sales and expenses for a recent month...

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Accounting

Clock Company sells a single product. The companys sales and expenses for a recent month follow:

TOTAL PER UNIT

Sales $600,000 $40

Less Variable Expenses 420,000 28

Contribution Margin 180,000 $12

Less fixed expenses 150,000

Net Operating Income $ 30,000

Required:

a) What is the monthly break-even point in units sold and in sales dollars?

b) Without resorting to computations, what is the total contribution margin at the break-even point?

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