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A furniture manufacturer specializes in wood tables. The tables sell for $200 per unit and incur $80 per unit in variable costs. The company has
A furniture manufacturer specializes in wood tables. The tables sell for $200 per unit and incur $80 per unit in variable costs. The company has $15,600 in fixed costs per month. The company desires to earn an operating profit of $28,800 per month. (Abbreviation used; CM = contribution margin.) Read the requirements. 10. Calculate the required sales in units to earn the target profit using the equation method. Requirements First, select the formula to compute the target profit. - Target profit Target profit 10. Calculate the required sales in units to earn the target profit using the equation method. 11. Calculate the required sales in units to earn the target profit using the contribution margin method. 12. Calculate the required sales in dollars to earn the target profit using the contribution margin ratio method. 13. Calculate the required sales in units to break even using the contribution margin method. Print Print Done Done
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