Blanchard Company manufactures a single product that sells for $136 per unit and whose total variable costs are $102 per unit. The company's annual fixed costs are $496,400. Management targets an annual pretax income of $850,000. Assume that fixed costs remain at $496,400. (1) Compute the unit sales to earn the target income. Choose Numerator: Fixed costs plus pretax income Choose Denominator: Contribution margin per unit Units to Achieve Target = Units to achieve target 0 (2) Compute the dollar sales to earn the target income. Choose Numerator: Fixed costs plus pretax income Choose Denominator: Dollars to Achieve Target Contribution margin ratio = Dollars to achieve target 0
Blanchard Company manufactures a single product that sells for $136 per unit and whose total variable costs are $102 per unit. The company's annual fixed costs are $496,400. Management targets an annual pretax income of $850,000. Assume that fixed costs remain at $496,400. (1) Compute the unit sales to earn the target income. Choose Numerator: Fixed costs plus pretax income Choose Denominator: Contribution margin per unit Units to Achieve Target = Units to achieve target 0 (2) Compute the dollar sales to earn the target income. Choose Numerator: Fixed costs plus pretax income Choose Denominator: Dollars to Achieve Target Contribution margin ratio = Dollars to achieve target 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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