What amount sales is necessary to earn desired profit? Dove, Inc. produces a product that has avariable cost of $6.00 per unit. Thecompany's fixed costs are $60,000. Theproduct is sold for $9.00 per unit and thecompany desires to earn a target profit of$30,000.What is the amount of sales that will benecessary to earn the desired profit?

Part 2: AnswerWe can solve this problem by using the concept of contribution margin. Here's…

Answered: Dove, Inc. produces a product that has…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

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Dove, Inc. produces a product that has a variable cost of $6.00 per unit. The company's fixed costs are $60,000. The product is sold for $9.00 per unit and the company desires to earn a target profit of $30,000. What is the amount of sales that will be necessary to earn the desired profit?