The following information describes a product expected to be produced and sold by Hadley Company:
Selling price $80 per unit
Variable costs $32 per unit
Total fixed costs $630,000
Required:
(a)Calculate the contribution margin ratio.
(b)Calculate the break-even point in dollar sales.
(c)What dollar amount of sales would be necessary to achieve a pretax income of $120,000?

Question

Quizplus · Accepted Answer

The Answer of The following information describes a product expected to be produced and sold by Hadley Company:
Selling price $80 per unit
Variable costs $32 per unit
Total fixed costs $630,000
Required:
(a)Calculate the contribution margin ratio.
(b)Calculate the break-even point in dollar sales.
(c)What dollar amount of sales would be necessary to achieve a pretax income of $120,000?

The Following Information Describes a Product Expected to Be Produced