Determining sales volume. A company’s contribution margin ratio is 40 percent.

Its fixed costs total $300,000 per year. What sales volume must be attained in order for the company to earn $150,000 per year?The Harris Company has the following standard costs per unit for its one product:

Use the same information as given above for the Harris Company except that in 19X1, 10,800 units were produced and 10,000 units were sold.

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Materials Labor Manufacturing Overhead Variable Fixed $4 8 $10 Total $26 The fixed cost of $8 per unit is based on producing 10,000 units and fixed overhead of $80,000. The sales price is $40 per unit. Selling and administrative expenses are as follows: variable, $2 per unit; fixed, $50,000 per year. During 19X1, 10,000 units were produced and sold.