The Herald Company manufactures and sells a single product which sells for $50 per unit and has

Question:

The Herald Company manufactures and sells a single product which sells for $50 per unit andhas a ratio of 30%. The company's monthly fixed expenses are $25,000. If Herald desires a monthly target net operating income equal to 20% of sales dollars, sales in units will have to be (rounded):
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...