If the contribution margin ratio is 32%,target operating income is $60,000,and the sales revenue needed to achieve the target operating income is $400,000,what are total fixed expenses?

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Quizplus · Accepted Answer

Total fixed expenses = Sales revenue needed to achieve the target operating income * (1 - Contribution margin ratio)= $400,000 * (1 - 0.32)= $400,000 * 0.68= $68,000

If the Contribution Margin Ratio Is 32%,target Operating Income Is