Huels & Sons Inc. manufactures fishing products. The company hired you as its senior financial analyst....
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Huels & Sons Inc. manufactures fishing products. The company hired you as its senior financial analyst. The COO, Dr. Huels provided you the following financial data: Sales Variable costs Fixed costs $500,000 $100,000 $200,000 He asked you to report back to him regarding the following questions: What is the contribution margin ratio? 1) 2) What is the level of sales in dollars necessary to generate a profit of $40,000? What is the contribution margin ratio if the sales price is increased by 10%? Using the information in part 3, what level of sales in dollars is necessary to generate a profit of $40,000? 3) 4) Huels & Sons Inc. manufactures fishing products. The company hired you as its senior financial analyst. The COO, Dr. Huels provided you the following financial data: Sales Variable costs Fixed costs $500,000 $100,000 $200,000 He asked you to report back to him regarding the following questions: What is the contribution margin ratio? 1) 2) What is the level of sales in dollars necessary to generate a profit of $40,000? What is the contribution margin ratio if the sales price is increased by 10%? Using the information in part 3, what level of sales in dollars is necessary to generate a profit of $40,000? 3) 4)
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Solution 1 Contribution margin ratio Contribution margin Sales 500000 100000 500000 8... View the full answer
Related Book For
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
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