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Randolph runs a lemonade stand and wants to make $150 in the next week

Accounting

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Randolph runs a lemonade stand and wants to make $150 in the next week. He sells each cup of lemonade for $0.75, while the variable cost is $0.15 for the cups and ingredients. Fixed costs such as posters and signs are $15.00.

Calculate the following:

a.    Contribution margin per unit sold

b.    Contribution margin ratio

c.     Breakeven point in units

d.    Units to be sold to earn the targeted operating income