Assume that the breakeven point of Dollar Company is $37,500 in terms of sales. Fixed costs are

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Assume that the breakeven point of Dollar Company is $37,500 in terms of sales. Fixed costs are $15,000.

a. What is the contribution margin ratio?

b. What is the sales price if the variable costs are $18 per unit?

c. What is the amount of the margin of safety both in units and in dollars if 1,400 units are sold?

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Managerial Accounting

ISBN: 9780137689453

1st Edition

Authors: Jennifer Cainas, Celina J. Jozsi, Kelly Richmond Pope

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Question Posted: Sep 04, 2023 09:41 AM

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Assume that the breakeven point of Dollar Company is $37,500 in terms of sales. Fixed costs are

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a BEP sales dollars Total fixed costs Contribution margin ratio 37500 15000 x x 150...View the full answer

Managerial Accounting

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