Problem related to Accounting: Raven Company has a target of earning $88,000 pre-tax income. The contribution margin ratio is 35%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $52,000? a. $313,555. b. $306,000. c. $300,000. d. $353,333. e. $400,000.
Problem related to Accounting: Raven Company has a target of earning $88,000 pre-tax income. The contribution margin ratio is 35%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $52,000? a. $313,555. b. $306,000. c. $300,000. d. $353,333. e. $400,000.
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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Problem related accounting
Transcribed Image Text:Problem related to Accounting:
Raven Company has a target of earning $88,000 pre-tax income.
The contribution margin ratio is 35%. What amount of dollar
sales must be achieved to reach the goal if fixed costs are
$52,000?
a. $313,555.
b. $306,000.
c. $300,000.
d. $353,333.
e. $400,000.
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