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Calculate the current level of break-even sales in dollars

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Question - Klinken Corporation's contribution margin ratio on the sale of its most popular product is 50%. The product is priced at $87, annual fixed expenses are $835,000. Management is evaluating two options: (1) lowering variable costs by 20% and (2) reducing fixed expenses by 20%.

Required - Calculate the current level of break-even sales in dollars, as well as the break-even sales for the two options.

Reference no: EM133046599

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