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Roland Had Revenues of $600,000 in March

Question 117

Essay

Roland had revenues of $600,000 in March.Fixed costs in March were $200,000 and profit was $40,000.Answer the following questions:
a.What was the contribution margin percentage?
b.What monthly sales volume (in dollars)would be needed to break-even?
c.What sales volume (in dollars)would be needed to earn $150,000?

Correct Answer:

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a.40% = ($200,000 + $40,000)/$600,000
b....

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