Answer:
$245,000.00
Explanation:
The amount of sales revenue to be made to achieve target profit is computed as follows:
<em>Sales revenue to achieve target income</em>
<em>= Total fixed cost for the period + target profit/ contribution margin</em>
Contribution margin = (Sales - variable cost) / sales × 100
The figure has been given as 40% in the question
Sales revenue to achieve target profit = (83,000 + 15,000)/0.4
$245,000.00
Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,000, what dollar amount of sales must be made to produce the target income?
Sales revenue to achieve target profit = $245,000.00
Demand.
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Answer:
agree with this
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You should leave 3 seconds of space between you and the vehicle ahead of you.
Calculation of Net sales last year for Lang Company:
It is given that Gross billings for merchandise sold by Lang Company to its customers last year amounted to $11,720,000; sales returns and allowances were $370,000, sales discounts were $175,000.
Net sales can be calculated using the following formula;
Net Sales = Sales –Sales Returns –Allowances
= $11,720,000-$370,000-$175,000
= $11,175,000
Hence the Net sales last year for Lang Company is $11,175,000
Hence the correct asnwer is <u>c. $11,175,000.</u>
