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MGT402 Assignment Solution Fall 2020-2021 Solution
1. Calculate the contribution margin per unit.
Contribution margin par unit = Sales less variable costs of sales
Contribution margin par unit = 80-(20+15+25)
Contribution margin par unit =20

2. Calculate breakeven sales in terms of units

breakeven sales in terms of units = FC/
Contribution margin per unit
breakeven sales in terms of units = 3660/20
breakeven sales in terms of units = 153

decrease in sales price by 10% and increase in sales volume by 5%

TOTAL 11340
SALE (80+(80*5/100)84 5040
LESS VARIABLE COST (20+15+25)*84 5040
CONTRIBUTION 6300
FIXED COST 3060
NET PROFIT 3240

PER UNIT
150-(150*10/100)135

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