Question: The following information describes a product expected to be produced and sold by Hardley Company Selling price .........................$80 per unit Variable costs......................$32 per unit Total

The following information describes a product expected to be produced and sold by Hardley Company

Selling price .........................$80 per unit

Variable costs......................$32 per unit

Total fixed cost ........................$630,000


Required

a) Calculate the contribution margin ratio

b) Calculate the breakeven point in dollar sales

c) What dollar amount of sales would be necessary to achieve a pretax income of $120,000?

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