Flannigan Company manufactures and sells a single product that sells for $630 per unit; variable costs are $378. Annual fixed costs are $872,000. The current sales volume is $4,380,000. Flannigan Company management targets an annual pre-tax income of $1,305,000. Compute the dollar sales to earn the target pre-tax net income. a. $5,949,600. b. $5,442,500. c. $3,628,333. d. $3,195,333. e. $2,762,333.

Flannigan Company manufactures and sells a single product that sells for $630 per unit; variable costs are $378. Annual fixed costs are $872,000. The current sales volume is $4,380,000. Flannigan Company management targets an annual pre-tax income of $1,305,000. Compute the dollar sales to earn the target pre-tax net income. a. $5,949,600. b. $5,442,500. c. $3,628,333. d. $3,195,333. e. $2,762,333.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CE: Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at...

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