Franklin Company incurs annual fixed costs of $79,650. Variable costs for Franklin’s product are $24.80 per unit, and the sales price is $40.00 per unit. Franklin desires to earn an annual profit of $60,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. Note: Do not round intermediate calculations. Round your final answers to the nearest whole number.
Franklin Company incurs annual fixed costs of $79,650. Variable costs for Franklin’s product are $24.80 per unit, and the sales price is $40.00 per unit. Franklin desires to earn an annual profit of $60,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. Note: Do not round intermediate calculations. Round your final answers to the nearest whole number.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Franklin Company incurs annual fixed costs of $79,650. Variable costs for Franklin’s product are $24.80 per unit, and the sales price is $40.00 per unit. Franklin desires to earn an annual profit of $60,000.
Required
Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole number.
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