Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

How do I solve this? Exercise 21-12 Computing sales to achieve target income LO C2 points Blanchard Company manufactures a single product that sells for

How do I solve this?

image text in transcribed

Exercise 21-12 Computing sales to achieve target income LO C2 points Blanchard Company manufactures a single product that sells for $140 per unit and whose total variable costs are $112 per unit. The company's annual fixed costs are $400,400. Management targets an annual pretax income of $700,000. Assume that fixed costs remain at $400,400. (8 04:03:03 Answer is complete but not entirely correct. (1) Compute the unit sales to earn the target income. Choose Numerator: I Choose Denominator: Fixed costs Contribution margin per unit 1,100,400 $ 28 la Units to Achieve Target Units to achieve target 39,300 units = (2) Compute the dollar sales to earn the target income. Choose Numerator: Choose Denominator: = Fixed costs 1 X 1,100,4001 Contribution margin ratio 0% = = Dollars to Achieve Target Dollars to achieve target 550,200,000 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

AML Auditing Understanding Transaction Monitoring

Authors: Bob Walsh

1st Edition

1539519740, 978-1539519744

More Books

Students explore these related Accounting questions