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Gipson Company produces and sells a single product whose selling price is $80.00 per unit and whose variable expense is $50.00 per unit. The company's fixed expense is $270,000 per month.
(a) What is the CM ratio (express your answer as a percentage to two decimal places)?
(b) How many units must be sold to break-even for the month?
(c) How many units do we need to sell to earn a profit of $240,000 for the month?
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