The following information describes a product expected to be produced and sold by Garr Company:
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?

Question

The following information describes a product expected to be produced and sold by Garr Company:
  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?

Quizplus · Accepted Answer

The Answer of The following information describes a product expected to be produced and sold by Garr Company:
  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?

The Following Information Describes a Product Expected to Be Produced