Exercise 5-12 Computing sales to achieve target income LO C2 Blanchard company\'

Question

Exercise 5-12 Computing sales to achieve target income LO C2 Blanchard company's annual fixed costs are $806,000. Man remain at $806,000 6 points Company manufactures a single product that sells for $208 per unit and whose totol variable costs are $156 per unt agement targets an annual pretax income of $1300,000 Assume that lived cost (1) Compute the unit sales to earn the target income. se DenominatorUnits to Achseve T Book Units to achieve target (2) Compute the dollar sales to earn the target income. Choose Numerator: Choose Den e becmDollas to Achieve Ta Dolars to achieve target

Explanation / Answer

(1) Units to achieve target = Fixed costs plus pretax income / Contribution margin per unit = $2,106,000 / $52 = 40,500 units

(2) Dollars to achieve target = Fixed costs plus pretax income / Contribution margin ratio = $2,106,000 / 25% = $8,424,000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.