Last year,

ActionAction

Co. recorded sales revenues of

$ 1 comma 800 comma 000$1,800,000,

variable costs of

$ 900 comma 000$900,000,

and fixed costs of

$ 500 comma 000$500,000.

Requirements

(a)	At what sales dollar level will ActionAction earn a before-tax target profit of $ 325 comma 000$325,000?
(b)	At what sales dollar level will ActionAction break even?

Requirement (a) At what sales dollar level will

ActionAction

earn a before-tax target profit of

$ 325 comma 000$325,000?

Begin by computing the contribution margin ratio. Enter the formula then compute the ratio. (Round the ratio to two decimal places.)

	/		=	Contribution margin ratio
	/		=