Watson Company has monthly fixed costs of $92,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,900, what dollar amount of sales must be made to produce the target income?

Multiple Choice

• $269,750

• $107,900

• $230,000

• $39,750

• $190,250

  Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are:

  	M			N			O
  Unit sales price	$	13		$	10		$	12
  Unit variable costs		9			8			10

  Total fixed costs are $342,000. The selling price per composite unit for the current sales mix (rounded to the nearest cent) is:

  Multiple Choice

• $35.00.

• $ 11.67.

• $38.00.

• $73.00.

• $49.00.