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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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