Bussy Corporation produces and sells a single product whose contribution margin ratio is 54%. The company's monthly fixed expense is $561,600 and the company's monthly target profit is $34,560. Required:Determine the dollar sales to attain the company's target profit.
What will be an ideal response?
Dollar sales to attain target profit = (Target profit + Fixed expenses) ÷ CM ratio
= ($561,600 + $34,560) ÷ 0.54 = $1,104,000
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