What dollar amount of sales would be necessary to achieve


The following information describes a product expected to be produced and sold by Hadley Company: Selling Price..... $80 per unit Variable costs.... $32 per unit Total Fixed costs.... $630,000

Required:

(a) Calculate the contribution margin ratio.

(b) Calculate the break-even 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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