The manager of Dukey’s Shoe Station estimates operating costs for the year will include $450,000 in fixed costs. Required: a. Find the break-even point in sales dollars with a contribution margin ratio of 40 percent. b. Find the break-even point in sales dollars with a contribution margin ratio of 25 percent. c. Find the sales dollars required to generate a profit of $100,000 for the year assuming a contribution margin ratio of 40 percent.

a. $1,250,00

b. $1,800,000

C. $1,375,000

Explanation:

a. BEP in sales dollar with 40% Contribution margin ratio

= Fixed costs / Contribution margin ratio

= $450,000 / 40%

= $1,250,000

b. BEP in sales dollar with contribution margin ratio of 25%

= Fixed costs / Contribution margin ratio

= $450,000 / 25%

= $1,800,000

c. Sales required to generate a profit of $100,000 assuming a Contribution margin ratio of 40%.

= ( Fixed costs + Desired profit ) / Contribution margin ratio

= ($450,000 + $100,000) / 40%

= $550,000 / 40%

= $1,375,000

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi