The Following Information Describes a Product Expected to Be Produced

question 183

Essay

The following information describes a product expected to be produced and sold by Garr Company:
Selling price……………………………………… $80 per unit
Variable costs…………………………………… $32 per unit
Total fixed costs………………………………… $630,000
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:

Articles

Written works published in newspapers, magazines, or online, covering a wide range of topics.

Divisions

Sections or branches that divide an organization or subject into parts with specific functions or areas of expertise.

Uniform Commercial Code

A set of laws that provide legal standards and regulations regarding commercial business transactions and dealings in the United States.

Uniform Civil Code

A proposal or concept advocating for a consistent set of laws governing personal matters (such as marriage, divorce, adoption) applicable to all citizens, regardless of religion or ethnicity, in a jurisdiction.