gnment Assume the following information: Per Unit $40 15 Sales Variable expenses Contribution margin Fixed expenses...

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gnment Assume the following information: Per Unit $40 15 Sales Variable expenses Contribution margin Fixed expenses Net opera

signment The dollar sales to attain a target profit of $195,000 is: Multiple Choice $396,800. $329,500. $661.333. $434,500

business accounting

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Answer 1

Answer #1

Correct answer------$396,800

.

For the solution first we need to calculate contribution margin ratio

Contribution margin ratio is equal to contribution margin per unit divided by sales price.

Contribution margin ratio= 25/40=62.5%
.

Now we can calculate sales to attain 195000 in profit

sales required= (fixed cost + deaired profit) / Contribution margin ratio.

sales required= (53000+195000)/62.5%= $396,800

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Answer 2

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