The following information describes a product expected to be produced and sold by Hadley Company: $\begin{array}{ll}
\text { Selling price } & \$ 80 \text { per unit } \
\text { Variable costs } & \$ 32 \text { per unit } \
\text { Total fixed costs } & \$ 630,000
\end{array}$
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: $\begin{array}{ll}
\text { Selling price } & \$ 80 \text { per unit } \
\text { Variable costs } & \$ 32 \text { per unit } \
\text { Total fixed costs } & \$ 630,000
\end{array}$
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