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Solomon Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs S 60 20% $384,000 Required Use
Solomon Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs S 60 20% $384,000 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 $48,000, what must the sales be in dollars? In units? c. If the sales price Increases to $64 and variable costs do not change, what is the new break-even point in dollars? In units? a Break-even point in dollars Break-even point in units b. Sales in dollars Sales in units Break-even point in dollars Break-even point in units $ 1,020,000 32.000 $ 2,160,000 36.000
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