Answered

Westonci.ca is your go-to source for answers, with a community ready to provide accurate and timely information. Get accurate and detailed answers to your questions from a dedicated community of experts on our Q&A platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

For Wildhorse Company, variable costs are 68% of sales, and fixed costs are $199,000. Management’s net income goal is $77,800. Compute the required sales in dollars needed to achieve management’s target net income of $77,800. (Use the contribution margin approach.)

Sagot :

Answer: $865000

Explanation:

Contribution margin ratio would be gotten as:

= 100% - 68%

= 32%

= 0.32

Then, the desired sales would be:

= (Fixed cost + desired profit) / CM ratio

= (199,000 + 77800) / 0.32

= 276800 / 0.32

= $865000

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.