For Wickham Co., sales is $3,000,000, fixed expenses are $900,000, and the contribution margin is 39%....
For Wickham Co., sales is $3,000,000, fixed expenses are $900,000, and the contribution margin is 39%. What is required sales in dollars to earn a target net income of $600,000?
A) $1,666,667
B) $2,500,000
C) $4,166,667
D) $8,333,333
Homework Answers
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Sales needed = (Fixed costs + Target profit) /Contribution margin ratio = (900,000+600,000)/39% = 1,500,000/39% = 3,486,154 Options are definitely wrong. This is your answer. |
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For Wickham Co., sales is $3,000,000, fixed expenses are
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