Smith Co. has a contribution margin ratio of 40% and a breakeven point of $200,000 in sales.
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Question:
Smith Co. has a contribution margin ratio of 40% and a breakeven point of $200,000 in sales. If the firm reports net income of $50,000 after taxes of 50%, what were total sales for the year?
a. $450,000
b. $466,667
c. $500,000
d. $700,000
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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