Question

Rubber and Steel Company is planning to manufacture a new product. The variable manufacturing costs will...

Rubber and Steel Company is planning to manufacture a new product. The variable manufacturing costs will be

$ 67$67

per unit and the fixed costs are estimated to be

$ 7308.$7308.

The selling price of the product is to be

$ 129$129

per unit. Variable selling expense is expected to be

$ 20$20

per unit.

​(a) Calculate the contribution margin per unit.

​(b) Determine the contribution rate.

​(c) Calculate the​ break-even point in units.

​(d) Determine the​ break-even point in sales dollars.

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