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2 Sarafine, Inc. sells a single product for $25. Variable costs are $12 per unit and fixed costs total $130,000 at a volume l

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Answer #1

Contribution margin=Sales-Variable costs

=25-12=$13 per unit

Contribution margin ratio=Contribution margin/Sales

=13/25

=0.52

Hence breakeven sale=Fixed cost/Contribution margin ratio

=130,000/0.52

=$250,000.

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