ed information The ng Pan Companys Prida applies to the quodaped belo factares ende dicund a marketet indbere plan cat $
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ed information The ng Pan Companys Prida applies to the quodaped belo factares ende dicund a marketet indbere plan cat $
Required information [The following information applies to the questions displayed below.] Praveen Company manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding that has not been as profitable as planned. Because Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $340 selling price per unit. Its fixed costs for the year are expected to be $421,600. Variable costs for the year are expected to be $204 per unit. 1. Estimate Product XT's break-even point in terms of sales units and sales dollars. (Do not round intermediate calculations.) Contribution Margin Sales Variable cost Contribution margin Contribution Margin ratio Numerator: Variable cost per unit 1 Numerator: $ per unit 7 Denominator: 340 204 136 1(a) Estimate Product XT's break-even point in terms of sales units. (1 unit = 100 yards) Denominator: 1(b) Estimate Product XT's break-even point in terms of sales dollars. Numerator 1 Denominator: = Contribution margin ratio = Break-even units Break-even dollars 0 0