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Solomon Company reported the following data regarding the product it sells: Sales price $ 6 0 Contribution margin ratio 2 0 % Fixed costs $

Solomon Company reported the following data regarding the product it sells:
Sales price $60
Contribution margin ratio 20%
Fixed costs $384,000
Use the contribution margin ratio approach and consider each requirement separately.
What is the break-even point in dollars? In units?
To obtain a profit of $48,000, what must the sales be in dollars? In units?
If the sales price increases to $64 and variable costs do not change, what is the new break-even point in dollars? In units?

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