A company has total fixed costs of $120,000 and acontribution margin ratio of 20
ID: 2447776 • Letter: A
Question
A company has total fixed costs of $120,000 and acontribution margin ratio of 20%. The total sales necessary tobreak even are
A.
$480,000.
B.
$600,000.
C.
$144,000.
D.
$150,000.
How much sales are required to earn a target income of$80,000 if total fixed costs are $100,000 and the contributionmargin ratio is 40%?
A.
$300,000.
B.
$200,000.
C.
$330,000.
D.
$450,000.
A company requires $1,020,000 in sales to meet its netincome target. Its contribution margin is 30%, and fixed costs are$180,000. What is the target net income?
A.
$306,000.
B.
$420,000.
C.
$234,000.
D.
$126,000.
How much sales are required to earn a target net incomeof $128,000 if total fixed costs are $160,000 and the contributionmargin ratio is 40%?
A.
$400,000.
B.
$720,000.
C.
$648,000.
D.
$320,000.
A company has total fixed costs of $120,000 and acontribution margin ratio of 20%. The total sales necessary tobreak even are
A.
$480,000.
B.
$600,000.
C.
$144,000.
D.
$150,000.
How much sales are required to earn a target income of$80,000 if total fixed costs are $100,000 and the contributionmargin ratio is 40%?
A.
$300,000.
B.
$200,000.
C.
$330,000.
D.
$450,000.
A company requires $1,020,000 in sales to meet its netincome target. Its contribution margin is 30%, and fixed costs are$180,000. What is the target net income?
A.
$306,000.
B.
$420,000.
C.
$234,000.
D.
$126,000.
How much sales are required to earn a target net incomeof $128,000 if total fixed costs are $160,000 and the contributionmargin ratio is 40%?
A.
$400,000.
B.
$720,000.
C.
$648,000.
D.
$320,000.
Explanation / Answer
Breaking even = Total fixed costs/contribution margin ratio A company has total fixed costs of $120,000 and a contributionmargin ratio of 20%. The total sales necessary to break evenare 120,000/.20 = 600,000(B) How much sales are required to earn a target income of$80,000 if total fixed costs are $100,000 and the contributionmargin ratio is 40%? 80,000+100,000/.40 = 450,000(D) A company requires $1,020,000 in sales to meet its netincome target. Its contribution margin is 30%, and fixed costs are$180,000. What is the target net income? 180,000/.30 = 600,000 1,020,000-600,000=420,000(B) How much sales are required to earn a target net income of$128,000 if total fixed costs are $160,000 and the contributionmargin ratio is 40%? 128,000+160,000/.40 = 720,000(B)
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