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Question: Break-Even Point and Target Profit Measured in Sales Dollars (Single Product). Mammoth Company has monthly fixed costs totaling $200,000 and variable costs of $40 per unit. Each unit of product is sold for $50.
Required:
a. Calculate the contribution margin ratio.
b. Find the break-even point in sales dollars.
c. What amount of sales dollars is required to earn a monthly profit of $120,000?
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