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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?

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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
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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