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A company sells a product with a contribution margin ratio of 20%. The company's monthly fixed expense is $400,000 and the company's monthly target profit

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A company sells a product with a contribution margin ratio of 20%. The company's monthly fixed expense is $400,000 and the company's monthly target profit is $100,000. The dollar sales required to attain the target profit are:

A.

$2,500,000

B.

$1,500,000

C.

$625,000

D.

$2,000,000

Sales above the break-even point will result in net profit equal to _______.

A.

number of units above break-even times fixed cost per unit

B.

number of units above break-even times contribution margin per unit

C.

number of units above break-even times sales price per unit

D.

number of units above break-even times variable cost per unit

Answer the questions based on the graph shown below: S350,000 300,000 S250,000 5200,000 150,000 100,000 $50,000 So 100 200 300 400 500 600 Volume in units sold ---_-.) represents [B] The dotted line..) represents [C] The solid line( [D] The approximate numbers of units at the break-even point is E In a sentence or two, describe the variable expense line. If applicable, include its relation to the other lines shown on the graph. ) represents

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