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LenKa [72]
3 years ago
7

Watson Company has monthly fixed costs of $75,000 and a 40% contribution margin ratio. If the company has set a target monthly i

ncome of $14,200, what dollar amount of sales must be made to produce the target income?
Business
1 answer:
Inessa05 [86]3 years ago
7 0

Answer:

The dollar amount of sales must be made to produce the target income is $223000.

Explanation:

required total income = monthly fixed + monthly target income

                                    = $75,000 + $14,200

                                    = $89200

sales = [required total income]/[contribution margin ratio]

         = ($89200)/(40%)

         = $223000

Therefore, the dollar amount of sales must be made to produce the target income is $223000.

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6 0
2 years ago
Economic systems seek to answer what key economic questions Select all that apply. How should goods and services be produced? Wh
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7 0
3 years ago
Maud, a calendar year taxpayer, is the owner of a sole proprietorship that uses the cash method. On February 1, 2019, she leases
gtnhenbr [62]

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Explanation:

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5 0
4 years ago
The balance in the unearned fees account, before adjustment at the end of the year, is $95,500. Of these fees, $82,760 have been
Travka [436]

Answer:

Explanation:

The adjusting entries are shown below:

a. Unearned Fees A/c Dr $82,760

             To Fees Earned A/c $82,760

(Being unearned fees are adjusted)

For recording the transactions we debited the unearned fees account and credited the fees earned account

b. Accounts Receivable A/c Dr $32,640

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5 0
3 years ago
A company is considering a capital investment of $45,000 in new equipment which will improve production and increase cash flows
saw5 [17]

Answer:

3 years

Explanation:

Calculation to determine The payback period

Using this formula

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8 0
3 years ago
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