Question
Noel & Vang Company sells only one product at a regular price of $9.00 per unit. Variable expenses are 55% of sales, and fixed expenses
Noel & Vang Company sells only one product at a regular price of $9.00 per unit. Variable expenses are 55% of sales, and fixed expenses are $40,000. Management has decided to decrease the selling price to $8.00 in the hope of increasing its volume of sales. What is the contribution margin ratio when the selling price is reduced to $8.00 per unit? (Note: Round answer to two decimal places.)
a.38.13%
b.40.50%
c.75.46%
d.60.50%
Atlas Company sells only one product at a regular price of $10.00 per unit. Variable expenses are 70% of sales, and fixed expenses are $50,000. Management has decided to decrease the selling price to $9.00 in the hope of increasing its volume of sales. What is the sales dollars level required to break even at the old price of $10.00? (Note: Round answer to two decimal places.)
a.$180,000.30
b.$126,000.50
c.$166,666.67
d.$150,000.25
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