Ridgeview Inc. has a target of earning $72,000 pre-tax income. The contribution margin ratio is 40%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $63,000? a. $315,000 b. $337,500 c. $350,000 d. $300,000 e. $400,000

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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Ridgeview Inc. has a target of earning $72,000 pre-tax income.
The contribution margin ratio is 40%. What amount of dollar
sales must be achieved to reach the goal if fixed costs are
$63,000?
a. $315,000
b. $337,500
c. $350,000
d. $300,000
e. $400,000
Transcribed Image Text:Ridgeview Inc. has a target of earning $72,000 pre-tax income. The contribution margin ratio is 40%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $63,000? a. $315,000 b. $337,500 c. $350,000 d. $300,000 e. $400,000
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