Question
Colt Company produces and sells a single product. The product sells for Php120 per unit and has a contribution margin ratio of 30%. The company's
Colt Company produces and sells a single product. The product sells for Php120 per unit and has a contribution margin ratio of 30%. The company's monthly fixed expenses are Php57,600. If Colt Company wants a monthly net operating income equal to 15% of sales, monthly sales will have to be
45,600
384,000
192,000
120,000
Step by Step Solution
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Step: 1
Answer is Option B ie 384000 Explanation Desired sales are calculated using the following formula ...
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
