Perez Manufacturing Company reported the following data regarding a product it manufactures and sells. The...
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Accounting
Perez Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $43. Variable costs Manufacturing $14 per unit Selling 4 per unit Fixed costs Manufacturing $155,000 per year Selling and administrative $187,500 per year Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $172,500. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,700 units, how much could it pay in salaries for salespeople and still have a profit of $172,500? (Hint: Use
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