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A furniture manufacturer specializes in wood tables. The tables sell for $150 per unit and incur $45 per unit in variable costs. The company
A furniture manufacturer specializes in wood tables. The tables sell for $150 per unit and incur $45 per unit in variable costs. The company has $12,600 in fixed costs per month. The company desires to earn an operating profit of $25,200 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. First, select the formula to compute the target profit. Rearrange the formula you determine above and compute the required sales in units. Required sales in units to earn target profit using equation method = 11. Calculate the required sales in units to earn the target profit using the contribution margin method. + ) = Required sales in units = Target profit 12. Calculate the required sales in dollars to earn the target profit using the contribution margin ratio method. Select the formula labels and then enter the amounts to compute the required sales in dollars. ) + + = Required sales in dollars = % 13. Calculate the required sales in units to break even using the contribution margin method. Select the formula labels and then enter the amounts to compute the required sales in units to break even using the contribution margin method. (Complete all input fields. For items with a zero value, enter a 0.) + + = Required sales in units =
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