A recent income statement of McClennon Corporation reported the following data: X 00:48:29 Units sold Sales revenue Var...

Question

Question

A recent income statement of McClennon Corporation reported the following data: X 00:48:29 Units sold Sales revenue Variable

Answer 1

Answer #1

Contribution margin=Sales-Variable cost

=10,625,000-5,525,000=$5,100,000

Contribution margin per unit=5,100,000/8500=$600 per unit

Target Contribution margin=Fixed cost+Target profits

=(2,780,000+2,620,000)=5400000

Hence target sales=5400000/600

=9000 units.

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Answer 2

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