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Compute the break-even sales in dollars

Problem 1: Break-even analysis is of limited use to management because a company cannot survive by just breaking even. Do you agree? Explain.

Problem 2: Total fixed costs are $22,000 for Forrest Inc. It has a contribution margin per unit of $15, and a contribution margin ratio of 25%. Compute the break-even sales in dollars.

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Accounting Basics: Compute the break-even sales in dollars

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