Question - The following information describes a product expected to be produced and sold by Hadley 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?