Question: Sales Price $ 5 0 Variable Cost $ 3 0 Fixed Costs $ 4 0 , 0 0 0 Budgeted Production 6 , 0 0

Sales Price $50 Variable Cost $30 Fixed Costs$40,000 Budgeted Production6,000 units Required: I. Calculate the following using ratios rather than the chart: a. Contribution to sales ratio. b. Breakeven point in units. c. Breakeven point in revenue. d. How many units need to be sold to achieve a profit of $50,000 e. How much revenue is required to achieve a profit of $50,000. f. The margin of safety. II.(ii) Draw a Break-even chart for the product based on the above information and determine where the breakeven point is using the chart.

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