Sunshine Company sells a single model of sunglasses which has a selling price of $20...
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Accounting
Sunshine Company sells a single model of sunglasses which has a selling price of $20 per sunglass with a variable cost of $12 per unit. The companys fixed expense is $15,000 per month.
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What is the break-even (BEP) point in units?
2 points
What is the break-even (BEP) point in sales dollars?
1 point
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What is the contribution margin (CM) ratio?
2 points
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Find the number of units that have to be sold to earn a profit of $40,000.
2 points
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What is the profit/loss at a sales level of 5,000 units?
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What is the degree of operating leverage at 5,000 units?
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