1) A company has a target income of $128,000. The contribution margin ratio is 30%. Whatdollar amount of sales must be achieved to reach the goal if fixed costs are $64,000?Targeted dollar sales ($64,000+ $128,000)/0.30 = $640,000-

Cost volume profit analysis is the technique used by management for decision-making. The methods…

Answered: 1) A company has a target income of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company requires $1400000 is sales to meet its net income target. Its contribution margin is 50% and fixed costs are $300000. What is the company's target net income?
Assume the following (1) variable expenses = $300,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 20%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? Multiple Choice The total fixed expenses = $60,000 The variable expense ratio is 400% The total contribution margin = $240,000 The total sales = $375,000
Ajani Company has variable costs equal to 40% of sales. The company is considering a proposal that will increase sales by $10,000 and total fixed costs by $6,000. By what amount will net income increase? A. $6,000 B. $4,000 C. $2,000 D. $0
Assume total fixed costs of $160,000, variable costs per unit of $6, and contribution margin per unit of $4. How many units must be sold to meet a target net income of $50,000, assuming a tax rate of 20%?
Assume the following information: \table[[,Amount,Per Unit],[Sales,$300,000,$40
Henderson Company has fixed costs of $32,000 and a contribution margin ratio of 25%. If expected sales are $200,000, what is the margin of safety as a percent of sales? Multiple Choice O O O O O 28%. 56%. 36%. 17%. 64%.
Raven Company has a target income of $71,900, The contribution margin ratio is 25%. What amount of dollar sales must be achleved to reach tve goal f d cond e Multiple Cholce $446,40O. $28,760. $39,700. $515,300. $39,800.

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1) A company has a target income of $128,000. The contribution margin ratio is 30%. What dollar amount of sales must be achieved to reach the goal if fixed costs are $64,000? Targeted dollar sales ($64,000+ $128,000)/0.30 = $640,000 M