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Question(s) / Instruction(s):

 

182.     Jefferson Company produces only product A. The following information is available:

               Selling price per unit      $95
               Variable costs per unit      $70
               Total fixed costs      $130,000

     Required:

     a.     Compute break even point in units.

     b.     Compute break even volume in dollars.

     c.     Compute the margin of safety assuming planned unit sales of 6,000.



183.     The following information is for Wood Products Corporation:

               Total fixed costs      $345,700
               Unit variable costs      $50.95
               Unit selling price      $68.50

     Required:

     a.     Compute the contribution margin per unit.

     b.     Compute the contribution margin ratio.

     c.     Compute the break even point in units.

     d.     Compute the break even volume in dollars.


184.     Oakdale Municipal Hospital has variable costs of $80 million per year. These costs represent approximately 80% of the total revenues. There are 50,000 patient-days estimated for next year.

     Required:

     a.     What is the break-even point expressed in total revenue?

     b.     What is the average daily revenue per patient necessary to breakeven?


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