Question: Problem 3-20A (Algo) Determining the break-even point and preparing a break-even graph LO 3-1, 3-3 Reld Company is considering the production of a new product.
Problem 3-20A (Algo) Determining the break-even point and preparing a break-even graph LO 3-1, 3-3 Reld Company is considering the production of a new product. The expected variable cost is $28 per unit, Annual fixed costs are expected to be $651,000. The anticipated sales price is $70 each Required Determine the break-even point in units and dollars using each of the following a. Use the equation method b. Use the contribution margin per unit approach c. Use the contribution margin ratio approach. (Do not round intermediate calculations. Round "Contribution margin ratio" to 1 decimal place. (i.e., 0.234 should be entered as 23.4) a. Break-even point in units Break-even point in dollars b. Contribution margin per unit Break-even point in units Break-even point in dollars c. Contribution margin ratio Break-even point in units Break-even point in dollars
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