A company has fixed costs of $270,000, a unit contribution margin of $14, and a contribution margin ratio of 55%. If the firm wants to earn a target $60,000 pretax income, what amount of sales must the company make (rounded to the nearest whole dollar)?
A) 490,909.
B) 330,000.
C) 109,090.
D) 381,818.
E) 600,000.
E) 600,000.
Explanation: Sales dollars required to earn target pre-tax income of $60,000 = ($270,000 +
$60,000)/55% = $600,000
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