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Break-even and target profits; volume defined in sales dollars. The manager of Hsus Carryout Express estimates operating costs for the year will total $230,000 for
Break-even and target profits; volume defined in sales dollars. The manager of Hsus Carryout Express estimates operating costs for the year will total $230,000 for fixed costs.
Required: a. Find the break-even point in sales dollars with a contribution margin ratio of 40 percent. b. Find the break-even point in sales dollars with a contribution margin ratio of 20 percent. c. Find the sales dollars required with a contribution margin ratio of 50 percent to generate a profit of $150,000.
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