Parit $3$ of $3$

Points: $0\mathrm{.}25$ of $1$

and the steel producers have increased raw material costs. Roger's contribution margin has shrunk to $60\%$ of revenues. The company's monthly operating income, prior to these pressures, was $$297\mathrm{.}000.$

Read the requirements.

Requirement $1.$ To maintain this same level of profit, what sales volume $($in sales revenue$)$ must Roger now ach eve?

Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach.

$($ Fixed expenses $+$ Operating income $()+$ Contrbution margin ratio