The manager of Wongs Food Express estimates operating costs for the year will total $300,000 for fixed costs a Find the break even point in sales dollars with a contribution margin ratio of 40 percent b Find the break even point in sales dollars with a contribution margin ratio of 25 percent c Find...

The manager of Wongs Food Express estimates operating costs for the year will total $300,000 for fixed

Question:

The manager of Wong’s Food Express estimates operating costs for the year will total $300,000 for fixed costs.
a. Find the break-even point in sales dollars with a ratio of 40 percent.
b. Find the break-even point in sales dollars with a ratio of 25 percent.
c. Find the sales dollars required with a ratio of 40 percent to generate a profit of $100,000.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...