Question 5 Cost-Volume Profit Analysis Recline Company is planning to produce...

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Accounting

Question 5
Cost-Volume Profit Analysis
Recline Company is planning to produce and sell 11,250 units of its only product at a unit price of $106. At this sales level Recline Company will generate $405,000 in total contribution margin and incur fixed costs of $25? unit.
a. Calculate Recline's contribution margin ratio.
Round answer to the nearest whole percentage (ex: 0.3456=35%)
%
b. Calculate the break-even point in sales dollars for Recline.
Use your rounded answer from part a. above and then round final answer to the nearest dollar
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