Barney Stinson, a "legal advisor" at Goliath Bank, is under intense pressure at work to ensure that his division generates at least $250,000 operating income this year. The financial instrument that his division sells produces contribution margin of $5 per unit and a contribution margin percentage of 80%. Barney's division has $40,000 of fixed costs. What level of sales revenue does Barney need to achieve in order to meet the division's goal of $250,000 of operating income this year? Question 7 options: $50,000 $58,000 $362,500 $232,000 $312,500
Barney Stinson, a "legal advisor" at Goliath Bank, is under intense pressure at work to ensure that his division generates at least $250,000 operating income this year. The financial instrument that his division sells produces contribution margin of $5 per unit and a contribution margin percentage of 80%. Barney's division has $40,000 of fixed costs. What level of sales revenue does Barney need to achieve in order to meet the division's goal of $250,000 of operating income this year? Question 7 options: $50,000 $58,000 $362,500 $232,000 $312,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Barney Stinson, a "legal advisor" at Goliath Bank, is under intense pressure at work to ensure that his division generates at least $250,000 operating income this year. The financial instrument that his division sells produces contribution margin of $5 per unit and a contribution margin percentage of 80%. Barney's division has $40,000 of fixed costs. What level of sales revenue does Barney need to achieve in order to meet the division's goal of $250,000 of operating income this year?
Question 7 options:
|
|
$50,000 |
|
|
$58,000 |
|
|
$362,500 |
|
|
$232,000 |
|
|
$312,500 |
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