Finch Company reported the following data regarding the product it sells: Sales price Contribution margin ratio:...

Transcribed Image Text:

Finch Company reported the following data regarding the product it sells: Sales price Contribution margin ratio: Fixed costs Required $50 20% $320,000 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 $40,000, what must the sales be in dollars? In units? c. If the sales price increases to $80 and variable costs do not change, what is the new break-even point in dollars? In units? a. Break-even point in dollars a. Break-even point in units b. Sales in dollars b. Sales in units c Break-even point in dollars c. Break-even point in units Finch Company reported the following data regarding the product it sells: Sales price Contribution margin ratio: Fixed costs Required $50 20% $320,000 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 $40,000, what must the sales be in dollars? In units? c. If the sales price increases to $80 and variable costs do not change, what is the new break-even point in dollars? In units? a. Break-even point in dollars a. Break-even point in units b. Sales in dollars b. Sales in units c Break-even point in dollars c. Break-even point in units