Answer:
Sales volume= $2,400,000
Explanation:
Giving the following information:
Lake Sales had $2,200,000 in sales last month.
The contribution margin ratio was 30% and operating profits were $180,000.
Desired profit= $240,000.
First, we need to calculate the fixed costs using the break-even point in dollars formula:
Break-even point (dollars)= (fixed costs + profit)/ contribution margin ratio
2,200,000= (fixed costs + 180,000) / 0.30
480,000= fixed costs
Now, we can calculate the number of sales required for $240,000 in profits
Break-even point (dollars)= (480,000 + 240,000)/0.3
Break-even point (dollars)= $2,400,000
