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Sapphire Company makes a single product that it sells for $180 per unit and has a contribution margin ratio 28%. The company's fixed costs are $98,000. If Sapphire desires a monthly target operating profit equ

Sapphire Company makes a single product that it sells for $180 per unit and has a contribution margin ratio 28%. The company's fixed costs are $98,000. If Sapphire desires a monthly target operating profit equ

FINANCIAL ACCOUNTING
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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Sapphire Company makes a single product that it sells for $180 per unit and has a contribution margin ratio of 28%. The company's fixed costs are $98,000. If Sapphire desires a monthly target operating profit equal to 20% of sales, what will sales have to be (rounded)? A )5, 512 B) 5,940 C) 6,806 D) 7,245
Transcribed Image Text:Sapphire Company makes a single product that it sells for $180 per unit and has a contribution margin ratio of 28%. The company's fixed costs are $98,000. If Sapphire desires a monthly target operating profit equal to 20% of sales, what will sales have to be (rounded)? A )5, 512 B) 5,940 C) 6,806 D) 7,245
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