Data concerning Matsumoto Corporation's single product appear below: Assume the company's target profit is $8,000.The dollar sales to attain that target profit is closest to:

Question

Data concerning Matsumoto Corporation's single product appear below:  Assume the company's target profit is $8,000.The dollar sales to attain that target profit is closest to:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $130.00 per unit - $52.00 per unit = $78.00 per unit
CM ratio = Unit CM ÷ Unit selling price = $78.00 per unit ÷ $130.00 per unit = 0.60
Dollar sales to attain a target profit = (Target profit + Fixed expenses)÷ CM ratio
= ($8,000 + $280,800)÷ 0.60
= $288,800 ÷ 0.60 = $481,333

Data Concerning Matsumoto Corporation's Single Product Appear Below: Assume