Calculate the sales dollar required to earn operating income

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Reference no: EM132693971

Queensland Company makes radios that sell for $60 each. For the coming year, management expects fixed costs to total $121,440 and variable costs to be $48.00 per unit.

Problem 1: Calculate the break-even point in dollars using the contribution margin ratio.

Problem 2: Calculate the margin of safety ratio assuming actual sales are $759,000.

Problem 3: Calculate the sales dollars required to earn operating income of $120,000.

Reference no: EM132693971

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