The TarProf-707 Company currently distributes a product that sells for $26.00 per unit and has a contribution margin ratio of 30%. The companys fixed expenses are $132,600 per year. The company plans to sell 18,800 units this year.

By using a new supplier, the company believes it can reduce its variable expenses by $2.60 per unit. If the company decides use the new supplier, what dollar sales is required to attain a target profit of $54,600?

Multiple Choice

• $468,000

• $187,200

• $331,500

• $624,000