Question

The Kringel company provides the following information: Sales (200,000 units) $500,000 Manufacturing costs: Variable 170,000 Fixed...

The Kringel company provides the following information: Sales (200,000 units) $500,000 Manufacturing costs: Variable 170,000 Fixed 30,000 Selling and administrative costs: Variable 80,000 Fixed 20,000

Required:

a. What is the break-even point in units for Kringel?

b. What is the variable cost per unit for Kringel?

c. What is the contribution margin per unit for Kringel?

d. Should a multiple product firm focus on individual product break-even point? Why or why not? Discuss with logical arguments.

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