If the contribution margin ratio is .40, targeted net income is $50,000, and total fixed costs are

Question:

If the contribution margin ratio is .40, targeted net income is $50,000, and total fixed costs are $75,000, then sales volume in dollars is:

a. $250,000

b. $312,500

c. $275,000

d. $350,000

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...