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Last year Easton Corporation reported sales of $760,000, a contribution margin ratio of 20% and a net loss of $28,000. Based

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Answer #1

Contribution margin ratio=Contribution margin/Sales

=(760,000*20%)=152000

Contribution margin-Fixed expense=Net income

152000-Fixed expenses=(28000)

Fixed expenses=152,000-(28000)=$180,000

Hence breakeven point=Fixed expenses/Contribution margin ratio

=$180,000/0.2

=$900,000

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