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Calculate the contribution margin ratio

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Reference no: EM132787992

Question - Use the following information to answer questions

Sale Revenue (1,000 units x $400 per unit) $400,000

Variable Cost per unit (1,000 units x $200 per unit) 200,000

Contribution Margin 200,000

Fixed Costs 110,000

Income $ 90,000

Required -

1. Calculate the Contribution Margin ratio.

2. Calculate the number of units they need to sell to break even.

Reference no: EM132787992

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