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Zara Products reported the following data regarding the product it sells: Sales price $60 Contribution margin ratio 20% Fixed costs $200,000 Use the contribution margin ratio approach. To obtain a profit of $64,000, what must the sales be in dollars? In units? i. 20,000 units ii. 22,000 units iii. 21,333 units iv. 23,500 units

Zara Products reported the following data regarding the product it sells: Sales price $60 Contribution margin ratio 20% Fixed costs $200,000 Use the contribution margin ratio approach. To obtain a profit of $64,000, what must the sales be in dollars? In units? i. 20,000 units ii. 22,000 units iii. 21,333 units iv. 23,500 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 17E
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What must the sales be in dollars? In units?

Zara Products reported the following data regarding the product it sells: Sales price $60 Contribution margin ratio 20% Fixed costs $200,000 Use the contribution margin ratio approach. To obtain a profit of $64,000, what must the sales be in dollars? In units? i. 20,000 units ii. 22,000 units iii. 21,333 units iv. 23,500 units
Transcribed Image Text:Zara Products reported the following data regarding the product it sells: Sales price $60 Contribution margin ratio 20% Fixed costs $200,000 Use the contribution margin ratio approach. To obtain a profit of $64,000, what must the sales be in dollars? In units? i. 20,000 units ii. 22,000 units iii. 21,333 units iv. 23,500 units
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