The Following Information Describes a Product Expected to Be Produced

question 107

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?

---

Definitions:

Union Concentration

The degree to which labor union membership is concentrated in certain industries, sectors, or among specific types of workers.

Political Forces

Influences that stem from the political environment affecting individuals and organizations.

Welfare Benefits

Government-provided support in the form of financial aid or services aimed at ensuring the well-being of its citizens, especially those facing poverty or social exclusion.

Political Opportunities

For collective action and social movement growth occur most frequently during election campaigns, when influential allies offer support to insurgents, when ruling political alignments become unstable, and when elite groups become divided and conflict with one another.