EX 3-27

The manager of Dukeys Shoe Station estimates operating costs for the year will include $375,000 in fixed costs.

Required:

a. Find the break-even point in sales dollars with a contribution margin ratio of 50 percent.

b. Find the break-even point in sales dollars with a contribution margin ratio of 30 percent.

c. Find the sales dollars required to generate a profit of $150,000 for the year assuming a contribution margin ratio of 50 percent.