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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?
Answer
This answer is hidden. It contains 134 characters.
Related questions
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B. Neither product A nor product B should be processed further.
C. Only product B should be processed further.
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E. A processing further decision cannot be made from the available data.
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D. $50
E. $5
Q:
Assume markup percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar amount of the markup per unit?
A. Total cost times markup percentage.
B. Total cost per unit times markup percentage per unit.
C. Total cost per unit divided by markup percentage per unit.
D. Markup percentage per unit divided by total cost per unit.
E. Markup percentage divided by total cost.
Q:
Capital budgeting decisions are generally based on:
A. Tentative predictions of future outcomes.
B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
D. Results from current outcomes only.
E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.