Exam 6: Decision-Making: Costvolumeprofit

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CopperZ Company has variable costs which are 40% of its unit selling price and fixed costs of $30,000.How many sales will CopperZ report at its break-even point in dollars?

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Croc Catchers calculates its contribution margin to be less than zero.Which statement is true?

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Contribution margin is the amount of profit remaining after deducting cost of goods sold.

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How many sales are required to earn a target after-tax net income of $80,000 if total fixed costs are $100,000, the contribution margin ratio is 40%, and the tax rate is 25%?

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