How much sales are required to earn a target income of $80,000, if total fixed costs are $100,000 and the contribution margin ratio is 40%?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...
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Please give me answer general accounting

How much sales are required to earn a
target income of $80,000, if total fixed costs
are $100,000 and the contribution margin
ratio is 40%?
Transcribed Image Text:How much sales are required to earn a target income of $80,000, if total fixed costs are $100,000 and the contribution margin ratio is 40%?
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