Company X requires sales of $2,042,000 to achieve its target net income. Contribution margin ratio of company X is 25% and fixed costs amounts to $150,000. Determine the amount of target net income. $2,192,000 $548,000 $360,500 $510,500
Company X requires sales of $2,042,000 to achieve its target net income. Contribution margin ratio of company X is 25% and fixed costs amounts to $150,000. Determine the amount of target net income. $2,192,000 $548,000 $360,500 $510,500
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are...
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![Company X requires sales of $2,042,000 to achieve its target net income. Contribution margin ratio of company X is
25% and fixed costs amounts to $150,000. Determine the amount of target net income.
$2,192,000
$548,000
$360,500
$510,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F832f6b93-1aa9-4316-a702-c0bbf3dfbd67%2F1df85eab-9c54-4a4b-84c0-85cf453da637%2Fatuxhmd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Company X requires sales of $2,042,000 to achieve its target net income. Contribution margin ratio of company X is
25% and fixed costs amounts to $150,000. Determine the amount of target net income.
$2,192,000
$548,000
$360,500
$510,500
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