Consider Mountain Dental's cost equation results obtained in E5-7 using least-squares regression. Required: 1. Determine Mountain Dental's

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Consider Mountain Dental's cost equation results obtained in E5-7 using least-squares regression.

Consider Mountain Dental’s cost equation results obtained in E5-7 using


Required:
1. Determine Mountain Dental's unit contribution margin and contribution margin ratio if it charges $45 for each cavity filled.
2. Prepare a contribution margin income statement for October assuming Mountain expects to fill 610 cavities during the month.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Managerial Accounting

ISBN: 978-0078025518

2nd edition

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

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