Essay
The Monterra Company provided the following information:
Sales $500,000
Variable costs $100,000
Fixed costs $200,000
A. Calculate the contribution margin ratio.
B. Calculate the level of sales in dollars necessary to generate a profit of $40,000?.
C. Calculate the contribution margin ratio if the sales sales price is increased by 10%.
D. Using the information in part C, calculate the level of sales in dollars is necessary to generate a profit of $40,000.
Correct Answer:
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A. ($500,000 - $100,000) / $500,000 = 80...View Answer
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Correct Answer:
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