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Bandar co. sells one product at a price $65. the contribution margin ratio is 80% and fixed expenses are $208000 per month.
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Question & Answer: Bandar co. sells one product at a price $65. the contribution margin ratio is 80% and fixed ex…..
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compute sales in dollars required earn a target net income of $98280.
sales???
Expert Answer
| selling price | 65 | |
| contribution margin ratio | 80% | |
| Fixed cost | 208000 | |
| target profit | 98280 | |
| Break even point in sales | (fixed cost+ target income)/contribution margin ratio | (208000+98280)/80% |
| Break even point in sales | 382850 |
