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    Calculating break-even sales in dollars

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    Mckee corporation has annual fixed costs of $12 million. Its variable costs ratio is 0.60.

    a) determine the company's break even dollar sales volume.

    b) determine the dollar sales volume required to earn target profit of $ 3 million.

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    Solution Preview


    Fixed costs = $12 million
    Variable cost ratio = 0.6
    Break even Dollar ...

    Solution Summary

    Solution describes the steps for calculating break even sales and sales required to meet a target profit.