Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Currentsales total 16,000 units.In order to produce a target profit of $22,000, Narchie's dollar sales must total:Multiple Choice$8,440.$21,100.$1,000,000.$1,055,000.none of the answers is correct.

It is pertinent to note that under marginal costing costs are divided into two typesa) Variable…

Answered: Narchie sells a single product for $50.…

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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Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units. In order to produce a target profit of $22,000, Narchie's dollar sales must total: