Determine sales volume to earn desired profit. (Obj. 6). A company's contribution margin ratio is 40 percent. Its fixed costs are

$280,000 per year. What sales volume would be necessary if the company's goal is to earn $400,000 for the year?

DATA FOR EXERCISES 24-10 to 24-13 Henry, a student at Haynes County Community College, has just started a part-time business of constructing and selling birdhouses.

He plans to charge an average of $40 for each birdhouse. He estimates that his variable costs for materials, labor, and supplies will be $15 for each birdhouse. His fixed costs are estimated to be $300 per month, including manufacturing overhead and operating expenses.

LO.1