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get profit )+ CM ratio Required sales in dollars 33,000 ) + 60.00 % 1,027,000

get profit )+ CM ratio Required sales in dollars 33,000 ) + 60.00 % 1,027,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 6, Part 3

Crandall Company sells flags with team logos. Crandall has fixed costs of $583,200 per year plus variable costs of $4.80 per flag. Each flag sells for $12.00. Read the requirements. Operating Income (Loss)
Transcribed Image Text:Crandall Company sells flags with team logos. Crandall has fixed costs of $583,200 per year plus variable costs of $4.80 per flag. Each flag sells for $12.00. Read the requirements. Operating Income (Loss)
Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn $33,000 in operating income. (Round the required sales in dollars up to the nearest whole dollar. For example, $10.25 would be rounded to $11. Abbreviation used: CM = contribution margin.) ( Fixed costs Target profit ) + CM ratio = Required sales in dollars + ( $ 583,200 $ 33,000 ) + 60.00 % 1,027,000
Transcribed Image Text:Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn $33,000 in operating income. (Round the required sales in dollars up to the nearest whole dollar. For example, $10.25 would be rounded to $11. Abbreviation used: CM = contribution margin.) ( Fixed costs Target profit ) + CM ratio = Required sales in dollars + ( $ 583,200 $ 33,000 ) + 60.00 % 1,027,000
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