Problem

Jackson Company recently calculated its break-even sales revenue to be $15,000, For each d...

Jackson Company recently calculated its break-even sales revenue to be $15,000, For each dollar of sales revenue. $0.70 goes to cover variable costs.

Compute the following:

a.    The contribution margin ratio.


b.     Total fixed costs.


c.     The sales revenue that would have to be generated to earn an operating income of $9,000.

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