MSQ-01 - Activity Cost & CVP Analysis (Final)

Tonykinn company is contemplating of marketing a new

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10. Tonykinn Company is contemplating of marketing a new product. Fixed costs will be $800,000 for production of 75,000 units or less and $1,200,000 if production exceeds 75,000 units The variable cost ratio is 60% for the first 75,000. Contribution margin percentage will increase to 50% for units in excess of 75,000. If the product is expected to sell for $25 per unit, how many units must Tonykinn sell to breakeven?
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