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Pupzy Company units have a sales price of $ 1 , 8 7 5 . 0 0 ?and a variable cost of $ 5 6

Pupzy Company units have a sales price of $1,875.00 ?and a variable cost of $562.50. ?Fixed costs are $550,000 ?and Pupzy's tax rate is 40%.
\table[[Question,Answer],[a. ?What is Pupzy's contribution margin ratio? Note: Round your answer to 2 ?decimals.,],[\table[[b. ?Pupzy wants after-tax net income of $300,000. ?How much revenue must Pupzy generate in order to achieve],[this net income? Note: Round your answer to 2 ?decimals.]],],[\table[[c. ?Pupzy has the opportunity to switch to a new, more efficient supplier. Doing so will decrease variable cost per],[unit by 15%. ?However, the switch will also require an additional $60,000 ?in fixed costs. If Pupzy makes the switch,],[what is Pupzy's new contribution margin ratio? Note: Round your answer to 2 ?decimals.]],%],[\table[[d. ?If Pupzy makes the switch to the new supplier, how much revenue must Pupzy generate to generate $300,000
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