How do I solve this question? Vernon Company reported thefollowing data regarding the productit sells:Sales price$60Contribution margin ratio 10%Fixed costs$216,000Use the contribution margin ratioapproach.To obtain a profit of $54,000, whatmust the sales be in dollars? Inunits?

Step 1: Define Cost-Volume-Profit (CVP) AnalysisThe cost-volume-profit (CVP) analysis is handy in…

Answered: Vernon Company reported the following…

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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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?