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Sunland Company has fixed costs of $1500000 and variable costs are 20% of sales. What are...

Sunland Company has fixed costs of $1500000 and variable costs are 20% of sales. What are the required sales if Sunland desires net income of $300000?

A.$7500000

B.$9000000

C.$2250000

D.$1875000

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Answer #1

Answer is option c) $ 2,250,000 Variable cost ratio = Thus contribution margin ratio =100% - 20% = 20% 80% Add Fixed cost= de

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