A retail store's cost of goods sold is $240,000, and its desired gross profit rate is 40% on sales. What should be the total sales amount amount to achieve this target?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...
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A retail store's cost of goods sold is
$240,000, and its desired gross profit
rate is 40% on sales. What should be the
total sales amount
amount to achieve this
target?
Transcribed Image Text:A retail store's cost of goods sold is $240,000, and its desired gross profit rate is 40% on sales. What should be the total sales amount amount to achieve this target?
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