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Cost-Volume-ProfitAnalysis Assume that a company has the following cost structure: Total Fixed Cost $96,000 Unit Selling Price $24.00 Contribution Margin Ratio Required: 25% Calculate a

  1. Cost-Volume-ProfitAnalysis

Assume that a company has the following cost structure:

Total Fixed Cost

$96,000

Unit Selling Price

$24.00

Contribution Margin Ratio

Required:

25%

  1. Calculate a breakeven point in units
  2. Calculate breakeven point in sales dollars
  3. Compute target income assuming that the company wants to earna $48,000 before-tax profit.

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