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$675000 is required sales to attain profit of $120000.
Required Sales to attain Target Profit | |
Dollar Sales=(Target Profit+Fixed Expenses)/Contribution Ratio | |
Fixed Costs | 150000 |
Contribution Ratio | 40% |
Target Profit | 120000 |
So, putting figures in this formula we have Dollar Sales | 675000 |
=(120000+150000)/40% |
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