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EO 7,987 FO 9,344 $36,000? 7. AO 4,262 BO 4,987 CO 5.834 DO 6,826 S pt In 2019, X Companys profit function was 0.37R - $85,8

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Answer #1

Answer: B) 324,567

Revised Fixed cost = 85,800-18,018 = 67,782

Contribution Margin Ratio =37%

Net operating income Must earn = 34,000 /(1-35%) = 52,307.692

Revenue To Earn = (Fixed cost + Net operating income ) /CMratio

= (67782+52,307.692)/ 37% = $324,567 (Answer)

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