Mountain View Enterprises has a target of earning $120,000 pre-tax income. The contribution margin ratio is 30%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $50,000?

Mountain View Enterprises has a target of earning $120,000 pre-tax income. The contribution margin ratio is 30%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $50,000?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

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Question

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Can you help me solve this financial accounting question using valid financial accounting techniques?

Mountain View Enterprises has a target of earning
$120,000 pre-tax income. The contribution margin
ratio is 30%. What amount of dollar sales must be
achieved to reach the goal if fixed costs are
$50,000?

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