Question: Sales price $ 20 Contribution margin ratio 40% fixed cost $900,000 a) what is the break-even point in dollars? b)what is the break-even point in

Sales price $ 20

Contribution margin ratio 40%

fixed cost $900,000

a) what is the break-even point in dollars?

b)what is the break-even point in units?

c) to obtain a profit of 360,000 what must the sales be in dollars?

d)to obtain a profit of 360,000 what must the sales be in units?

e) if the sales price increases to $24 and variable cost do not change, what is the new break-even point in dollar?

f)if the sales price increases to $24 and variable cost do not change, what is the new break-even point in units?

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