Sales to earn target profit by contribution margin approach


Q1) Lin Corporation has single product whose selling price is= $120 and whose variable cost is= $80 per unit. Company's monthly fixed expense is= $50,000.

Questions:

1. Using equation method, solve for \unit sales which are required to earn target profit of $10,000.

2. Using contribution margin approach, solve for dollar sales that are needed to earn target profit of $15,000.

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Accounting Basics: Sales to earn target profit by contribution margin approach
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