If the contribution margin ratio is 0.40,targeted net profit is $50 000,and fixed costs are $75 000,then sales volume in dollars is:

Question

Quizplus · Accepted Answer

To find the sales volume in dollars required to achieve a targeted net profit, you can use the formula: Sales = (Fixed Costs + Target Profit) / Contribution Margin Ratio. Plugging in the given values: Sales = ($75,000 + $50,000) / 0.40 = $125,000 / 0.40 = $312,500.

If the Contribution Margin Ratio Is 0