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Vernon Company reported the following data regarding the product it sells: Sales price $60 Contribution margin ratio 10% Fixed costs $216,000 Use the contribution margin ratio approach. To obtain a profit of $54,000, what must the sales be in dollars? In units?

Vernon Company reported the following data regarding the product it sells: Sales price $60 Contribution margin ratio 10% Fixed costs $216,000 Use the contribution margin ratio approach. To obtain a profit of $54,000, what must the sales be in dollars? In units?

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 23E
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What must the sales be in dollars? In units?

Vernon Company reported the following data regarding the product it sells: Sales price $60 Contribution margin ratio 10% Fixed costs $216,000 Use the contribution margin ratio approach. To obtain a profit of $54,000, what must the sales be in dollars? In units?
Transcribed Image Text:Vernon Company reported the following data regarding the product it sells: Sales price $60 Contribution margin ratio 10% Fixed costs $216,000 Use the contribution margin ratio approach. To obtain a profit of $54,000, what must the sales be in dollars? In units?
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