For Burns Company, variable costs are 60% of sales, and fixed costs are $195,000. Management's net income

Question:

For Burns Company, variable costs are 60% of sales, and fixed costs are $195,000. Management's net income goal is $75,000. Compute the required sales in dollars needed to achieve management's target net income of $75,000. (Use the approach.)

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...