For Crane Company, sales is $3000000, fixed expenses are $900000, and the contribution margin ratio is 36%. What is required sales in dollars to earn a target net income of $600000? $8333333 $2500000 $1666667 $4166667

For Crane Company, sales is $3000000, fixed expenses are $900000, and the contribution margin ratio is 36%. What is required sales in dollars to earn a target net income of $600000? $8333333 $2500000 $1666667 $4166667

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

For Crane Company, sales is $3000000, fixed expenses are $900000, and the contribution margin ratio is 36%. What is required sales in dollars to earn a target net income of $600000?

$8333333

$2500000

$1666667

$4166667

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