Swifty Corporation has fixed costs of $2000000 and variable costs are 20% of sales. What are...

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Swifty Corporation has fixed costs of $2000000 and variable costs are 20% of sales. What are the required sales if Swifty des

Answer 1

Answer #1

Required contribution margin=fixed cost+net income

=2,000,000+300,000=$2,300,000

Contribution margin=Sales-Variable cost

=100-20=80%

Hence target sales=$2,300,000/0.8

=$2875000

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Answer 2

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