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Volodya Company reported the following data regarding the product it sells Sales $ 40 Contribution margin ratio 20% Fixed cost $240,000 Use the contribution margin
Volodya Company reported the following data regarding the product it sells Sales $ 40 Contribution margin ratio 20% Fixed cost $240,000 Use the contribution margin ratio approach and consider each equipment 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. I 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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