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3. A company provided the following information: Sales $400,000 Variable costs $100,000 Fixed costs $150,000 Required: A. What is the contribution margin ratio? B. What
3. A company provided the following information: Sales $400,000 Variable costs $100,000 Fixed costs $150,000
Required: A. What is the contribution margin ratio? B. What is the level of sales in dollars necessary to generate a profit of 100,000? C. What is the contribution margin ratio if the sales price is increased by 20%? D. Using the information in part C, what level of sales in dollars is necessary to generate a profit of $100,000?
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