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Exercise 4-12 CVP Analysis, Profit Equation

Exercise 4-12 CVP Analysis, Profit Equation
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ACCOUNTING

MT425 / MT 425
Managerial Finance and Accounting
Kaplan University (KU Campus)

James Jiambalvo
Managerial Accounting, 4e
Hoboken, NJ: John Wiley & Sons.

Unit 4: Cost Measurement for Management

Chapter 4 Exercise 4-12 CVP Analysis, Profit Equation [LO 3] Clyde’s Marina has estimated that fixed costs per month are $300,000 and variable cost per dollar of sales is $0.40.

Required
a. What is the break-even point per month in sales dollars?
b. What level of sales dollars is needed for a monthly profit of $60,000?
c. For the month of July, the marina anticipates sales of $1,000,000. What is the expected level of profit?

 

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