Consider the following information available for Nebula Tech Inc.: Description Total fixed costs Amount $1,200,000 Contribution margin ratio 0.25 Based on the given information, calculate the sales revenue needed to achieve a target profit of $300,000. a. $6,000,000 b. $7,200,000 c. $5,400,000 d. $7,000,000
Consider the following information available for Nebula Tech Inc.: Description Total fixed costs Amount $1,200,000 Contribution margin ratio 0.25 Based on the given information, calculate the sales revenue needed to achieve a target profit of $300,000. a. $6,000,000 b. $7,200,000 c. $5,400,000 d. $7,000,000
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
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I am looking for the correct answer to this financial accounting question with appropriate explanations.
Transcribed Image Text:Consider the following information available for Nebula
Tech Inc.:
Description
Total fixed costs
Amount
$1,200,000
Contribution margin ratio 0.25
Based on the given information, calculate the sales revenue
needed to achieve a target profit of $300,000.
a. $6,000,000
b. $7,200,000
c. $5,400,000
d. $7,000,000
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