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The manager of Dukey's Shoe Station estimates operating costs for the year will include $465,000 in fixed costs.
Required:
a. Find the break-even point in sales dollars with a contribution margin ratio of 50 percent.
b. Find the break-even point in sales dollars with a contribution margin ratio of 30 percent.
c. Find the sales dollars required to generate a profit of $150,000 for the year assuming a contribution margin ratio of 50 percent.
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