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A furniture manufacturer specializes in wood tables. The tables sell for $100 per unit and incur $40 per unit in variable costs. The company has
A furniture manufacturer specializes in wood tables. The tables sell for $100 per unit and incur $40 per unit in variable costs. The company has $6,000 in fixed costs per month. The company desires to earn an operating profit of $12,000 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. Requirements 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
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