Question

volume is $4.210,000. Flannigan Company management targets an annual pre-tax income of St es and sells a single product that sells for $400 per unit variable costs are $232. Annual fsxed costs are $844,200 Current sales $135000 Compute the dollar sales to eam the target pre-tax net $2.830 814
$2,830,814 $5,763.328 $3 412.414
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Answer #1

E. $4,712,381

Contribution margin ratio = ($400 - $232) / $400 = 42%

Dollar sales to earn the target pre-tax net income = ($844,200 + $1,135,000) / 42% = $4,712,381

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