Use the contribution margin ratio approach: Sales price = $50; contribution margin ratio = 10%; fixed costs = $150,000 A)what is the break even point in dollars? In units? B) if the sales price increases to $60 and variable costs do not change, what is the new break even point in dollars? In units?
Use the contribution margin ratio approach: Sales price = $50; contribution margin ratio = 10%; fixed costs = $150,000 A)what is the break even point in dollars? In units? B) if the sales price increases to $60 and variable costs do not change, what is the new break even point in dollars? In units?
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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![Use the contribution margin ratio approach: Sales price = $50; contribution margin ratio = 10%; fixed costs
= $150,000 A)what is the break even point in dollars? In units? B) if the sales price increases to $60 and
variable costs do not change, what is the new break even point in dollars? In units?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F59aa3e84-52ab-4f63-99bb-15739ce47687%2Fbe4d280b-3d53-40c5-be8e-a746ce758d02%2Fhcxppd_processed.png&w=3840&q=75)
Transcribed Image Text:Use the contribution margin ratio approach: Sales price = $50; contribution margin ratio = 10%; fixed costs
= $150,000 A)what is the break even point in dollars? In units? B) if the sales price increases to $60 and
variable costs do not change, what is the new break even point in dollars? In units?
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