Jordan Company reported the following data regarding the product it sells:

Sales price $ $50$

Contribution margin ratio $10\%$

Fixed costs $ $150,000$

Required

Use the contribution margin ratio approach and consider each requirement separately.

What is the break$-$even point in dollars? In units?

To obtain a profit of $$50,000,$ what must the sales be in dollars? In units?

If the sales price increases to $$60$ and variable costs do not change, what is the new break$-$even point in dollars? In units?

Answer rating: 100% (QA)

To calculate the breakeven point and determine the sales required to achieve a specific profit using ... View the full answer