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You Have Been Provided with the Following Information Regarding the Closure

Question 14

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You have been provided with the following information regarding the Closure Manufacturing Company:
Sales price $50 Variable manufacturing cost per unit 24 Variable marketing cost per unit12 Fixed manufacturing costs 6 Fixed administrative costs3\begin{array}{llr} \text {Sales price } &\$50\\ \text { Variable manufacturing cost per unit } &24\\ \text { Variable marketing cost per unit} &12\\ \text { Fixed manufacturing costs } &6\\ \text { Fixed administrative costs} &3\\\end{array}



This information is based on forecasted sales of 33,000 units.
Required:
(a) What is the expected operating profit for the upcoming year?
(b) What is the break-even point in dollars?
(c) How much in sales dollars is required to generate an operating profit of $275,000?

Correct Answer:

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(a)[($50 ? $24 ? $6) × 33,000]...

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