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Westfield Inc. desires net income of $250,000 when it has $800,000 of fixed costs and variable costs of 70% of sales. 1. What is the required sales? 2. What is the contribution margin?

Westfield Inc. desires net income of $250,000 when it has $800,000 of fixed costs and variable costs of 70% of sales. 1. What is the required sales? 2. What is the contribution margin?

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...
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Please explain the solution to this general accounting problem using the correct accounting principles.

Westfield Inc. desires net income of $250,000 when it has $800,000 of fixed costs and variable costs of 70% of sales. 1. What is the required sales? 2. What is the contribution margin?
Transcribed Image Text:Westfield Inc. desires net income of $250,000 when it has $800,000 of fixed costs and variable costs of 70% of sales. 1. What is the required sales? 2. What is the contribution margin?
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