M and M, Inc. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs are $30,000. The product is sold for $5.00 per unit and the company desires to earn a target profit of $20,000. What is the amount of sales that will be necessary to earn the desired profit?     $75,000     $125,000     $83,333     $50,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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QUESTION 12

  1. M and M, Inc. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs are $30,000. The product is sold for $5.00 per unit and the company desires to earn a target profit of $20,000. What is the amount of sales that will be necessary to earn the desired profit?
       
    $75,000
       
    $125,000
       
    $83,333
       
    $50,000
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