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Watson Company has monthly fixed costs of $77,000 and a 50% contribution margin ratio. If the company has set a target monthly income of $14,400,

Watson Company has monthly fixed costs of $77,000 and a 50% contribution margin ratio. If the company has set a target monthly income of $14,400, what dollar amount of sales must be made to produce the target income?

Multiple Choice

  • $28,800

  • $182,800

  • $125,200

  • $154,000

  • $91,400

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