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Anon25 [30]
3 years ago
5

intends on adding a new product line. the contribution margin ratio for the new product is 0.2. they have a target operating inc

ome of $60,000, and targeted sales volume in dollars is $480,000. then total fixed costs must be: g
Business
1 answer:
FrozenT [24]3 years ago
3 0

Answer:

The total fixed costs must be:

$36,000.

Explanation:

a) Data and Calculations:

Contribution margin ratio for the new product = 0.2

Target operating income = $60,000

Targeted sales volume in dollars = $480,000

Fixed costs = targeted sales volume in dollars multiplied by contribution margin ratio, minus target operating income

Fixed costs = ($480,000 * 0.2) - $60,000 = $36,000

b) The focus should be on the break-even formula for dollar sales with a target profit.  When the formula is reversed, the fixed costs can be calculated as shown above.

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Specific tariffs are: Group of answer choices levied as a proportion of the value of the imported good. government payment to do
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Option (D) is correct.

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3 years ago
Ginny was hired by her company because she agreed to work overtime and carry out all tasks assigned to her as per the instructio
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7 0
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Your Competitive Intelligence team is predicting that the Digby Company will invest in adding capacity to their Deal product thi
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Explain how one driving force has facilitated change at Domino’s.
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. Executive Summary

This assignment has been written to demonstrate the analytical processes and strategies with a

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C) Mission Statement : Exceptional franchisees and team Exceptional franchisees and

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