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Dorian Company Produces and Sells a Single Product

Question 87

Multiple Choice

Dorian Company produces and sells a single product. The product sells for $60 per unit and has a contribution margin ratio of 40%. The company's monthly fixed expenses are $28,800.


-If Dorian Company desires a monthly operating income equal to 10% of sales,what will its monthly sales have to be?


A) $90,000.
B) $45,600.
C) $120,000.
D) $96,000.

Correct Answer:

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