Question

The contribution margin ratio of Candle Corporation's only product is 75%. The company's monthly fixed expense is $456,000 and the company's monthly target profit is $42,000. Required: Determine the dollar sales to attain the company's target profit

Answer 1

the dollar sales to attain the company's target profit is $664,000

Step-by-step explanation:

The calculation of the dollar sales is given below:

= (Monthly fixed expense + monthly target profit) ÷ contribution margin ratio

= ($456,000 + $42,000) ÷ 0.75

= $664,000

Hence, the dollar sales to attain the company's target profit is $664,000

The same should be considered and relevant