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Roger's Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $620,000 and a contribution margin of 85% of revenues.
Roger's Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $620,000 and a contribution margin of 85% of revenues. Read the requirements. . . . Requirement 1. Compute Roger's Steel Parts' monthly breakeven sales in dollars. Begin by identifying the formula. Breakeven sales in dollars - X Requirements 1. Compute Roger's Steel Parts' monthly breakeven sales in dollars. 2. Use the contribution margin ratio to project operating income (or loss) if revenues are $520,000 and if they are $1,060,000. 3. Do the results in Requirement 2 make sense given the breakeven sales you computed in Requirement 1? Explain
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