Homework Answers
Contribution margin=Sale price-Variable cost
=(135-81)=$54 per unit
a.Target Contribution margin=Fixed cost+Target profit
=(23580+4500)=$28080
Hence target unit sales=(28080/54)=520 units
b.Target Contribution margin=Fixed cost+Target profit
=(23580+9500)=$33080
Hence unit sales=(33080/54)=612.5925926 units
Hence dollar sales required=612.5925926*135=$82700.
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