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Dundar Mifflin manufactures and sells three products: X, Y, and Z. Annual fixed costs are $515,250 and data about the three products follow for 2017.                X Y Y Sales $150,00...

Dundar Mifflin manufactures and sells three products: X, Y, and Z. Annual fixed costs are $515,250 and data about the three products follow for 2017.

              

X

Y

Y

Sales

$150,000

$480,000

$790,000

Variable cost

80,000

175,000

290,000

              

Required:

1)     Determine the breakeven point

2)     The management expects sales to increase by 9% in 2018. What is the expected operating income in 2018?

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Answer #1

Dundar Mifflin 1. Break Even Point Sales Variable Cost Contribution margin Fixed Costs BEP-Fixed Cost/Contribution Margin 150

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