Lake Sales had $1,900,000 in sales last month. The contribution margin ratio was 40% and operating...
Lake Sales had $1,900,000 in sales last month. The contribution margin ratio was 40% and operating profits were $160,000. What sales volume does Lake's need to yield a $300,000 operating profit?
- $400,000.
- $1,740,000.
- $2,250,000.
- $2,200,000.
Homework Answers
| fixed expense = contribution -operating profits | ||||||
| 1,900,000*40% -160,000 | ||||||
| 600000 | ||||||
| BEP (volume) = (fixed expense + target profit)/contribution margin ratio | ||||||
| (600,000+300,000)/40% | ||||||
| 2,250,000 | answer | |||||
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