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The Following Information Describes a Product Expected to Be Produced

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Essay

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\begin{array}{ll}\text { Selling price } & \$ 80 \text { per unit } \\\text { Variable costs } & \$ 32 \text { per unit } \\\text { Total fixed costs } & \$ 630,000\end{array} 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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