Sweet Manufacturing is planning to sell 400,000 hammers for $3 per unit. The contribution margin ratio is 20%. If Sweet will break even at this level of sales, what are the fixed costs? a. $240,000 b. $560,000 c. $800,000 d. $960,000

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter16: Financial Planning And Control
Section: Chapter Questions
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5 - 30 Test Bank for Managerial Accounting, Sixth Edition
152. Sweet Manufacturing is planning to sell 400,000 hammers for $3 per unit. The contribution
margin ratio is 20%. If Sweet will break even at this level of sales, what are the fixed
costs?
a. $240,000
b. $560,000
c. $800,000
d. $960,000
Transcribed Image Text:5 - 30 Test Bank for Managerial Accounting, Sixth Edition 152. Sweet Manufacturing is planning to sell 400,000 hammers for $3 per unit. The contribution margin ratio is 20%. If Sweet will break even at this level of sales, what are the fixed costs? a. $240,000 b. $560,000 c. $800,000 d. $960,000
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