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Stuart Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs $ 45 20% $360,000 Required Use the
Stuart Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs $ 45 20% $360,000 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 $36,000, what must the sales be in dollars? In units? c. If the sales price increases to $48 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 1,800,000 40,000 1,980,000 44,000 $ Sales in units c. Break-even point in dollars Break-even point in units
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