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Stewart Company makes and sells several different kinds of bedding products. Stewart's management is looking to continue their recent growth, and has set $1,300,000 as
Stewart Company makes and sells several different kinds of bedding products. Stewart's management is looking to continue their recent growth, and has set $1,300,000 as their target net income for 2021. Their recent sales mix and contribution margin ratio by product are: Bedding Type % of Total Sales Dollars Contribution Margin Ratio Box springs 25% 10% Mattresses 50% 20% Headboards 15% 30% Bunk bed frames 10% 45% Stewart Company expects their total fixed costs to be $2,500,000 in 2021. REQUIRED: Calculate the sales (in dollars) of each bedding product that will be required for Stewart Company to reach their target net income for the year. Show your work
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