Question

Lindo Company incurs annual fixed costs of $80,000. Variable costs for Lindo’s product are $40 per unit, and the sales price is $64 per unit. Lindo desires to earn an annual profit of $40,000.

Required
Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit.



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  • CreatedFebruary 07, 2014
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