Problem

Porter Corporation has fixed costs of $660,000, variable costs of $24 per unit, and a cont...

Porter Corporation has fixed costs of $660,000, variable costs of $24 per unit, and a contribution margin ratio of 40 percent.

Compute the following:

a.    Unit sales price and unit contribution margin for the above product.


b.   The sales volume in units required for Porter Corporation to earn an operating income of $300,000.


c. The dollar sales volume required for Porter Corporation to earn an operating income of $300,000.

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