Question

Hassick Corporation produces and sells a single product whose contribution margin ratio is 63%. The company's monthly fixed expense is $460,530 and the company's monthly target profit is $19,000. The dollar sales to attain that target profit is closest to:

Answer 1

the dollar sales to attain that target profit is $761,159

Step-by-step explanation:

The computation of the dollar sales is shown below:

= (Fixed cost + target profit) ÷ (Contribution margin ratio)

= ($460,530 + $19,000) ÷ (0.63)

= $761,159

hence, the dollar sales to attain that target profit is $761,159