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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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I think this is likely to have the biggest impact on the success or failure of a typical project in my organization because change is the constant in modern-day business. Probably, since the inception of the modern-day industry.

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What job should i choose to be so rich
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<u />

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Due to scarce resources, every individual, whether rich or poor, faces an opportunity cost when choosing to produce or consume more of one good over another.

<h3>What is the problem with scarce resources?</h3>

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