(iii) Product 'X' generates a contribution to sales ratio of 40%. Fixed costs directly attrib-utable to ‘X' amounts to ₹ 60,000 per month. The sales required to achieve a monthlyprofit of ₹ 12,000 will be(A)1,87,500(B) ₹ 2,00,000(C) ₹ 1,65,000(D) ▼₹ 1,80,00042

The objective of the question is to calculate the sales required to achieve a monthly profit of INR…

Answered: (iii) Product 'X' generates a…

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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Consider the following information from the income statement of Leighton Company: Contribution margin ratio 40% Fixed expenses $140,000 Selling price $100 Target profit $120,000 Unit contribution margin $40 What are the sales dollars required to attain a target profit of $120,000? multiple choice A. $60,000 B. $400,000 C. $10,000 D. $300,000
Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin is $320,000 while the total fixed costs $80,000. If sales are expected to increase by 40% in the next period, how much would the new profit be ($)? O a. 336,000 O b. 272,000 O c. 304,000 O d. None of the given answers O e. 368,000
Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin is $320,000 while the total fixed costs $80,000. If sales are expected to increase by 20% in the next period, how much would the new profit be ( $)? a. 336,000 b. 272,000 c. 400,000 d. 304,000 e. None of the given answers
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(iii) Product 'X' generates a contribution to sales ratio of 40%. Fixed costs directly attrib- utable to ‘X' amounts to ₹ 60,000 per month. The sales required to achieve a monthly profit of ₹ 12,000 will be (A) 1,87,500 (B) ₹ 2,00,000 (C) ₹ 1,65,000 (D) ▼₹ 1,80,000 42