Jackson Company's operating results for last year are given below:
-If the company wants to increase its total contribution margin by 40% over last year,it will need to increase its sales by:

Question

Jackson Company's operating results for last year are given below: 
-If the company wants to increase its total contribution margin by 40% over last year,it will need to increase its sales by:

Quizplus · Accepted Answer

Contribution margin = Unit CM F1F1F1S1F1F1F10 Unit sales
= ($40 per unit - $14 per unit)F1F1F1S1F1F1F10 2,400 units
= $26 per unit F1F1F1S1F1F1F10 2,400 units = $62,400
Contribution margin = Unit CM F1F1F1S1F1F1F10 Unit sales
(1 + 0.40)F1F1F1S1F1F1F10 $62,400 = $26 per unit F1F1F1S1F1F1F10 Unit sales
$87,360 = $26 per unit F1F1F1S1F1F1F10 Unit sales
Unit sales = $87,360 F1F1F1S1F1F1F10 $26 per unit = 3,360 units
Change in unit sales = $40 per unit F1F1F1S1F1F1F10 (3,360 units - 2,400 units)= $40 per unit F1F1F1S1F1F1F10 960 units = $38,400
= $38,400 increase in sales

Jackson Company's Operating Results for Last Year Are Given Below