The break-even point in sales dollars for Rice Company is $360,000 and the company's contribution margin ratio is 30%. If Rice Company desires an income of $84,000, sales would have to total?

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To find the required sales to achieve a desired income, you can use the formula: Required Sales = (Fixed Costs + Desired Income) / Contribution Margin Ratio. The break-even point is where income is $0, so at $360,000 in sales, the fixed costs are covered. To achieve an additional $84,000 in income, you add this to the fixed costs and divide by the contribution margin ratio: Required Sales = ($360,000 + $84,000) / 0.30 = $444,000 / 0.30 = $1,480,000. This calculation seems to have been misunderstood in the initial response. The correct approach to find the sales needed to achieve an $84,000 income with a 30% contribution margin ratio is to first determine the total contribution margin needed (Fixed Costs + Desired Profit), then divide by the contribution margin ratio. However, without the fixed costs explicitly provided and using the break-even point to infer fixed costs, the calculation should correctly account for how the contribution margin ratio applies to achieving the desired profit over the break-even sales. The correct calculation should directly relate the desired profit to the contribution margin ratio and the additional sales needed beyond the break-even point.

The Break-Even Point in Sales Dollars for Rice Company Is