Sales (18,000 units) Varlable expenses Contribution margin Fixed expenses $ 360, 000 144,000 216,000 180,000 $ 36,00e Operating incone Required: Answer each question Independently based on the original data: 1. What is the product's CM ratio? 2 Use the CM ratio to determine the break-even point in sales dollars.

Sales (18,000 units) Varlable expenses Contribution margin Fixed expenses $ 360, 000 144,000 216,000 180,000 $ 36,00e Operating incone Required: Answer each question Independently based on the original data: 1. What is the product's CM ratio? 2 Use the CM ratio to determine the break-even point in sales dollars.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 87PSB

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