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Journey Company Is Considering the Production and Sale of a New

Question 197

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Journey Company is considering the production and sale of a new product with the following sales and cost data: unit sales price $18; unit variable costs $8.50; and total fixed costs of $81,250.Determine the dollar sales needed to generate a pre-tax income of $44,000,rounded to the nearest whole dollar.

Correct Answer:

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Contribution margin ratio = ($18 - $8.50...

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