The executive team at Green Valley Organics wants to maintain a gross profit margin of 45%. If the company forecasts net sales of $8.2 million next year, what gross profit will be necessary to achieve this target margin?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 6P
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Can you help me solve this general accounting question using valid accounting techniques?

The executive team at Green Valley Organics wants to maintain a
gross profit margin of 45%. If the company forecasts net sales of
$8.2 million next year, what gross profit will be necessary to
achieve this target margin?
Transcribed Image Text:The executive team at Green Valley Organics wants to maintain a gross profit margin of 45%. If the company forecasts net sales of $8.2 million next year, what gross profit will be necessary to achieve this target margin?
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