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kherson [118]
2 years ago
8

Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6, and each clock sells for $24. Calculate Juniper’s

contribution margin per unit and contribution margin ratio. If the company’s fixed costs total $6,660, determine how many clocks Juniper must sell to break even.
Business
1 answer:
julsineya [31]2 years ago
6 0

Answer:

The break even units of clock is 370 units.

Explanation:

Juniper Enterprises sells handmade clocks.

The variable cost per clock is $6.

The price of per unit of clock is $24.

The contribution margin per unit

= Sales - Variable cost

= $24 - $6

= $18

Break even units

= \frac{Total\ fixed\ costs}{Contribution\ unit}

= \frac{6,660}{18}

= 370 units

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