Boise Corp had a margin of safety of $375,000 last month, with sales revenue of $1,020,000 and fixed costs of $316,050. a. What are break-even sales? b. What is the contribution margin ratio? c. How much profit did Boise earn last month? d. How much would sales have to increase for Boise to earn profit of $726,670?
Boise Corp had a margin of safety of $375,000 last month, with sales revenue of $1,020,000 and fixed costs of $316,050. a. What are break-even sales? b. What is the contribution margin ratio? c. How much profit did Boise earn last month? d. How much would sales have to increase for Boise to earn profit of $726,670?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...
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Boise Corp had a margin of safety of $375,000 last month, with sales revenue of $1,020,000 and fixed costs of $316,050. a. What are break-even sales? b. What is the contribution margin ratio? c. How much profit did Boise earn last month? d. How much would sales have to increase for Boise to earn profit of $726,670?
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