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Question - The following information describes a product expected to be produced and sold by Hadley Company:
Selling price.......$80 per unit
Variable costs......$32 per unit
Total fixed costs ..$630,000
Required:
(a) Calculate the contribution margin ratio
(b) Calculate the break-even point in dollars
(c) What dollar amount of sales would be necessary to achieve a pretax income of $120,000?
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Calculate the estimated dollar savings (loss) for the Gibson Corporation that would result in 2017 from the adoption of JIT purchasing.
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