Question
Consider the following information from the income statement of Leighton Company: Contribution margin ratio 40% Fixed expenses $140,000 Selling price $100 Target profit $120,000 Unit
Consider the following information from the income statement of Leighton Company:
Contribution margin ratio 40%
Fixed expenses $140,000
Selling price $100
Target profit $120,000
Unit contribution margin $40
What are the sales dollars required to attain a target profit of $120,000? multiple choice
A. $60,000
B. $400,000
C. $10,000
D. $300,000
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
5th Canadian edition
978-1118024492
