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Vernon Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs 60 10% $216,000 Required Use the contribution
Vernon Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs 60 10% $216,000 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 $54,000, what must the sales be in dollars? In units? C. If the sales price increases to $72 and variable costs do not change, what is the new break- even point in dollars? In units? 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
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