Answer:
(Fixed expenses + Target net profit)/Contribution margin ratio
Explanation:
The formula to compute the dollar sales volume for attaining the target profit is shown below:
= (Fixed expenses + target profit) ÷ (Contribution margin ratio)
where,
Fixed expenses = Fixed cost
Target profit = The budgeted profit
And, the contribution margin ratio is
Contribution margin ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
Reliability because it shows that you are responsible to pay
