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Assume a firm has a contribution margin ratio of .25 and a contribution margin of $2 per unit. The firm has fixed expenses of $40,000.

Assume a firm has a contribution margin ratio of .25 and a contribution margin of $2 per unit. The firm has fixed expenses of $40,000. What amount of sales dollars will allow the firm to achieve $120,000 of target profits given no change in the price per unit, the variable expense per unit or total fixed expenses?

$80,000

$60,000

$640,000

$480,000

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