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EXERCISE 8-12 Performing Break-Even and Target Profit Analysis [LO2- CC5, 6, 7] Lima Inc. wishes to earn a before-tax profit equal to 20% of sales
EXERCISE 8-12 Performing Break-Even and Target Profit Analysis [LO2- CC5, 6, 7] Lima Inc. wishes to earn a before-tax profit equal to 20% of sales revenue. Its monthly fixed costs are $50,000 and contribution margin ratio is equal to 30%. Required: 1. Determine the annual break-even sales. 2. Compute the sales level required to achieve the desired profit level.
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Intermediate Accounting
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
Volume 1, 6th Edition
1259103250, 978-1259103254, 978-0071339476
