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.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23E

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