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Sweet Manufacturing Is Planning to Sell 400000 Hammers for $6

Question 215

Multiple Choice

Sweet Manufacturing is planning to sell 400000 hammers for $6 per unit. The contribution margin ratio is 20%. If Sweet will break even at this level of sales what are the fixed costs?


A) $480000
B) $1120000
C) $1600000
D) $1920000

Correct Answer:

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