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Zachary Company reported the following data regarding the product it sells: Sales price $48 Contribution margin ratio 25% Fixed costs $336,000 Required Use the contribution margin ratio approach and consider
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Zachary Company reported the following data regarding the product it sells:

Sales price $48
Contribution margin ratio 25%
Fixed costs $336,000

Required

Use the contribution margin ratio approach and consider each requirement separately.


A. To obtain a profit of $48,000, what must the sales be in dollars? In units?

B. If the sales price increases to $60 and variable costs do not change, what is the new break-even point in dollars? In units?

User Tilman Vogel
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13. MP Construct an Argument Explain how
you can mentally determine if the product
of 5.5 and 0.95
User Tom Robinson
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