Aurora Lighting Co. reported the following data for its primary product: Information Value $60 Sales Price per Unit Fixed Costs Contribution Margin Ratio 20% $200,000 Using the contribution margin ratio approach, calculate the sales in dollars and units needed to achieve a target profit of $50,000.
Aurora Lighting Co. reported the following data for its primary product: Information Value $60 Sales Price per Unit Fixed Costs Contribution Margin Ratio 20% $200,000 Using the contribution margin ratio approach, calculate the sales in dollars and units needed to achieve a target profit of $50,000.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 17E
Related questions
Question
100%
Please provide the correct answer to this financial accounting problem using valid calculations.
Transcribed Image Text:Aurora Lighting Co. reported the following data for its primary
product:
Information
Value
$60
Sales Price per
Unit
Fixed Costs
Contribution Margin Ratio 20%
$200,000
Using the contribution margin ratio approach, calculate the sales in
dollars and units needed to achieve a target profit of $50,000.
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