Erickson, Inc. makes student book bags that sell for $20 each. For the coming year, management expects

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Erickson, Inc. makes student book bags that sell for $20 each. For the coming year, management expects fixed costs to be $225,000. Variable costs are $15 per unit.

(a) Compute break-even sales in dollars using the mathematical equation.

(b) Compute break-even sales using the contribution margin ratio.

(d) Compute the sales required to earn net income of $150,000, using the mathematical equation.

Related Book For answer-question

Financial and Managerial Accounting

ISBN: 978-1285078571

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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Posted Date: Nov 08, 2018 03:07 AM

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Erickson, Inc. makes student book bags that sell for $20 each. For the coming year, management expects

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Financial and Managerial Accounting

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