The Following Information Describes a Product Expected to Be Produced

question 176

Essay

The following information describes a product expected to be produced and sold by Hadley Company:
$\begin{array}{ll}\text { Selling price } & \$ 80 \text { per unit } \\\text { Variable costs } & \$ 32 \text { per unit } \\\text { Total fixed costs } & \$ 630,000\end{array}$ 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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Definitions:

Diverges

Moves or extends in different directions from a common point, or becomes fundamentally different in character or form.

Consortium

An association, typically of several business companies, created to undertake a project that is beyond the resources of any one member.

Barcode

A representation of data regarding the object to which it is attached that is readable by machines, typically used for identification and tracking purposes.

Homoplastic Structures

Structures that occur in different species due to convergent evolution or parallel evolution, not because of a common ancestry.