Problem

The following information relates to the only product sold by Harper Company: Sales pric...

The following information relates to the only product sold by Harper Company:

Sales price per unit

$ 24

Variable cost per unit

18

Fixed costs per year

240,000

a.    Compute the contribution margin ratio and the dollar sales volume required to break even.


b. Assuming that the company sells 75,000 units during the current year, compute the margin of safety sales volume (dollars).

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