Question: 1) Total Sales = $4,000,000 Total Variable Costs = $800,000 Total Fixed Costs = $200,000 Required: Find: a) Contribution Margin Ratio b) Break-Even Point in

1) Total Sales = $4,000,000

Total Variable Costs = $800,000

Total Fixed Costs = $200,000

Required:

Find:

a) Contribution Margin Ratio

b) Break-Even Point in Dollars

c) Margin of Safety Ratio

2) Total Fixed Costs = $2,000,000

Target Profit = $200,000

Tax Rate = 25%

Sales Price Per Unit = $100

Variable Cost Per Unit = $80

Required: How many units must be sold to generate the target profit ?

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