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Please help me with this question, Im lost on how to compute the fixed plus pre tax. (1) Do not know how to do (2).
Please help me with this question, Im lost on how to compute the fixed plus pre tax. (1)
Do not know how to do (2).
Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company's annual fixed costs are $562,500. Management targets an annual pretax income of $1,012,500. (1) Compute the unit sales to earn the target income. Choose Numerator: Choose Denominator: Units to achieve target Fixed costs olue pret0000 Fixed costs plus pretax income Contribution margin per unitUnits to achieve target 50,000S 45 10,000 units (2) Compute the dollar sales to earn the target income. Choose Denominator: Dollars to achieve target Dollars to achieve target Choose Numerator: = Fixed costs plus pretax incomeContribution margin ratio = 800,000I 10,000%) = $ 18,000Step by Step Solution
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