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Adams Company reported the following data regarding the product it sells: SalespriceContributionmarginratioFixedcosts,5%$144,000 Sales price Contribution margin ratio Fixed costs Required Use the contribution margin ratio
Adams Company reported the following data regarding the product it sells: SalespriceContributionmarginratioFixedcosts,5%$144,000 Sales price Contribution margin ratio Fixed costs Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $36,000, what must the sales be in dollars? In units? c. If the sales price increases to $50 and variable costs do not change, what is the new break-even point in dollars? In units
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