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Watson Company has monthly fixed costs of $88,000 and a 40% contribution margin ratio. If the company has set a target monthly Income of $15.500, what dollar amount of sales must be made to produce the target Income? $258,750 O $103,500 O $220.000 $38,750 O $181.250

Watson Company has monthly fixed costs of $88,000 and a 40% contribution margin ratio. If the company has set a target monthly Income of $15.500, what dollar amount of sales must be made to produce the target Income? $258,750 O $103,500 O $220.000 $38,750 O $181.250

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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MC Qu. 65 Watson Company has monthly fixed costs... Watson Company has monthly fixed costs of $88,000 and a 40% contribution märgin ratio. If the company has set a target monthly Income of $15,500, what dollar amount of sales must be made to produce the target Income? $258,750 O $103,500 $220,000 $38.750 $181.250
Transcribed Image Text:MC Qu. 65 Watson Company has monthly fixed costs... Watson Company has monthly fixed costs of $88,000 and a 40% contribution märgin ratio. If the company has set a target monthly Income of $15,500, what dollar amount of sales must be made to produce the target Income? $258,750 O $103,500 $220,000 $38.750 $181.250
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