question archive 1) What amount of sales dollars is required to earn a target income of $80,000 if total fixed costs are $100,000 and sales price per unit is $100, and the variable cost per unit is $60? (1 point) a) $330,000 b) $450,000 c) $200,000 d) $300,000
1) What amount of sales dollars is required to earn a target income of $80,000 if total fixed costs are $100,000 and sales price per unit is $100, and the variable cost per unit is $60? (1 point) a) $330,000 b) $450,000 c) $200,000 d) $300,000
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1) What amount of sales dollars is required to earn a target income of $80,000 if total fixed costs are $100,000 and sales price per unit is $100, and the variable cost per unit is $60? (1 point)
a) $330,000
b) $450,000
c) $200,000
d) $300,000
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b) $450,000
Step-by-step explanation
Contribution Margin ratio = (Sales price - Variable cost)/Sales price
= (100-60)/100 = 40%
From the information given, we are going to get the the sales needed by taking;
(Fixed costs +Target profit)/Contribution margin ratio
Which will be
= (100,000+80,000)/40%
= 180,000/40%
= 450,000
