CoursHeroTranscribedText: Baby and Co. sell personalized teddy bears. The teddy bears sell for $50 and...
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CoursHeroTranscribedText: Baby and Co. sell personalized teddy bears. The teddy bears sell for $50 and feature a recording device where parents can record their voices inside the teddy bear. A typical month's results are as follows: Sales revenue $950,000 Variable expenses $620,000 Contribution margin $330,000 Fixed expenses $100,000 Operating income $230,000 Required: (Present the formula, show your solutions and highlight your answers. A. Calculate the Contribution Margin Per Unit. (2 marks) B. Calculate the Contribution Margin Ratio. (2 marks) C. Calculate the Break-Even Point in Units. (3 marks) D. Calculate the Break-Even Point in Dollars. (3 marks) E. Calculate the sales in units to achieve a profit of $ 100,000. (3 marks) F. If the variable cost per unit increased to $40, what will happen to the breakeven point? Explain what will happen to units and dollars? (2marks)
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