Contribution margin=Sales-Variable cost
=(140-70)=$70 per unit
Contribution margin ratio=Contribution margin/Sales
=(70/140)=0.5
a.Target Contribution margin=Fixed expenses+Target profit
=(31800+6700)=38500
Hence sales required=Target Contribution margin/Contribution margin per unit
(38500/70)
=550 units
b.Target Contribution margin=Fixed expenses+Target profit
=(31800+9600)=41400
Hence target sales=Target Contribution margin/Contribution margin ratio
=41400/0.5
=$82800
Lin Corporation has a single product whose selling price is $140 per unit and whose variable...
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