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Rundle Company reported the following data regarding the product it sells: Sales price Contribution margin ratio $64 25% $384,000 Fixed costs Required Use the
Rundle Company reported the following data regarding the product it sells: Sales price Contribution margin ratio $64 25% $384,000 Fixed costs Required 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
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a To calculate the breakeven point in dollars we can use the contribution margin ratio approach The contribution margin ratio is the percentage of eac...Get Instant Access to Expert-Tailored Solutions
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