FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Summer Company sells a product with a contribution margin ratio of 54%. Fixed costs per month are $630. What amount of sales (in dollars) must Summer Company have to earn an operating of $6,400? If each unit sells for $25.00, how many units must be sold to achieve the desired operating income?

(Round your answers to two decimal places when needed and use rounded answers for all future calculations and write unit answers in whole units when needed.)

 

(Fixed Costs + Target Profit) / Contribution Margin per ratio (%) = Required Sales in Dollars
Required sales in dollars / Sales price per unit = Required Sales in Units
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Transcribed Image Text:(Fixed Costs + Target Profit) / Contribution Margin per ratio (%) = Required Sales in Dollars Required sales in dollars / Sales price per unit = Required Sales in Units
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