Break-Even and Target Profits;volume Defined in Sales Dollars

question 20

Essay

Break-even and target profits;volume defined in sales dollars.The manager of Jose's Food Court Express estimates operating costs for the year will total $300,000 for fixed costs.
Required:
a.Find the break-even point in sales dollars with a contribution margin ratio of 40 percent.
b.Find the break-even point in sales dollars with a contribution margin ratio of 25 percent.
c.Find the sales dollars required with a contribution margin ratio of 40 percent to generate a profit of $100,000.
(Jose's Food Court Express;break-even and target profits;volume defined in sales dollars. )

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Definitions:

Carrier-ready

A term indicating that a product, particularly in telecommunications, is prepared and available for deployment or distribution by a carrier network.

Transport-ready

A term used to describe goods or items that are prepared and packed for shipping.

Magnuson-Moss Act

A federal law enacted in 1975 designed to protect consumers from deceptive warranty practices, applying primarily to consumer products.

Written Warranty

A formal, written promise offered by a manufacturer or seller to the purchaser of goods, guaranteeing the quality or performance of a product over a specified period.