If the contribution margin is .30, targeted net income is $76,800, and targeted sales volume in dollars

Question:

If the contribution margin is .30, targeted net income is $76,800, and targeted sales volume in dollars is $480,000, then total fixed costs are:

a. $23,000

b. $44,160

c. $67,200

d. $144,000

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...