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Watson Company has monthly fixed costs of $80,000 and a 50% contribution margin ratio. If the company has set a target monthlThe budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of unWatson Company has monthly fixed costs of $80,000 and a 50% contribution margin ratio. If the company has set a target monthl

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Answer #1

1.

Sales needed = (Fixed costs + Target profit)/Contribution margin ratio

= (80000 + 14700)/50%

= 94700/50%

= 189,400

Option E is the answer

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