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Zachary Company reported the following data regarding the product it sells:
| | | | |
| Sales price | $ | 48 | |
| Contribution margin ratio | | 25 | % |
| Fixed costs | $ | 336,000 | |
| |
Required
Use the contribution margin ratio approach and consider each requirement separately.
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What is the break-even point in dollars? In units?
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To obtain a profit of $48,000, what must the sales be in dollars? In units?
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If the sales price increases to $60 and variable costs do not change, what is the new break-even point in dollars? In units?
a. Break-even point in dollars Break-even point in units b. Sales in dollars Sales in units c. Break-even point in dollars Break-even point in units
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