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Benson Company reported the following data regarding the product it sells: Sales price 50 Contribution margin ratio Fixed costs 10% $120,000 Required Use the
Benson Company reported the following data regarding the product it sells: Sales price 50 Contribution margin ratio Fixed costs 10% $120,000 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 $45,000, what must the sales be in dollars? In units? c. If the sales price increases to $60 and variable costs do not change, what is the new break-even point in dollars? In units? a. Break-even point in dollars $ 1,200,000 Break-even point in units 24,000 $1,650,000 b. Sales in dollars Sales in units 33,000 c. Break-even point in dollars Break-even point in units
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