A company has total fixed costs of $120,000 and a contribution margin ratio of 20%. - 6927

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Request Description

A company has total fixed costs of $120,000 and a contribution margin ratio of 20%. The total sales necessary to break even are

A.  $144,000. 

 B.  $600,000. 

 C.  $480,000. 

 D.  $150,000. 

 
Solution Description

A company has total fixed costs of $120,000 and a contribution margin ratio of 20%. The total sales necessary to break ev