Computing contribution margin ratio

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Reference no: EM13154764

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?

Reference no: EM13154764

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