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Gilbert's Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses...

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Accounting

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Gilbert's Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $600,000 and a contribution margin of 80% of revenues. Read the requirements. The breakeven sales in dollars is Requirement 2. Use the contribution margin ratio to project operating income (or loss) if revenues are $510,000 and if they are $1,040,000. First, select the labels to calculate projected operating income. Then, calculate projected income (or loss) if revenues are $510,000. Finally, calculate projected income (or loss) if revenues are $1,040,000. (Enter the contribution margin ratio as a whole percent. Enter losses with a minus sign or parentheses.) Requirements 1. Compute Gilbert's Steel Parts' monthly breakeven sales in dollars. 2. Use the contribution margin ratio to project operating income (or loss) if revenues are $510,000 and if they are $1,040,000. 3. Do the results in Requirement 2 make sense given the breakeven sales you computed in Requirement 1? Explain

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