In order to produce a target profit of $22,000, narchie's dollar sales must total:_____.
1 answer:
In order to produce a target profit of $22,000, narchie's dollar sales must total $1,055,000.
In management accounting, a target profit is a profit that a company expects to make from its operations.
The sales of a target profit are the total sales in quantity or dollars that a company must make in order to achieve its target profit.
The sales in dollars of a target profit is calculated as:
The contribution margin ratio is computed as follows:
Where P is the unit price and VC is the variable cost per unit.
Narchie sells a single product for $50.
Variable costs are 60% of the selling price.
Thus, the contribution margin ratio for this firm is:
If the fixed cost is $400,000, in order to produce a target profit of $22,000, Narchie's dollar sales must total:
Sales of a target profit = $1,055,000
Hence, the answer is $1,055,000.
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Answer:
59 orders
Explanation:
For computing the how many rolls should order at a time, first we have to determine the economic order quantity which is shown below:
The computation of the economic order quantity is shown below:
=
where,
Carrying cost = $875 × 20% = $175
And, other items values would remain the same
ow put these values to the above formula
So, the value would be equal to
=
= 50.71 units
Now The number of orders would be equal to
= Annual demand ÷ economic order quantity
= $3,000 ÷ 50.71 units
= 59 orders