# Santiago Company incurs annual fixed costs of $66,000. Variable costs for Santiago's product are $34 per unit,

## Question:

Santiago Company incurs annual fixed costs of $66,000. Variable costs for Santiago's product are $34 per unit, and the sales price is $50 per unit. Santiago desires to earn an annual profit of $34,000.

Required

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

Contribution MarginContribution 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...

Fantastic news! We've Found the answer you've been seeking!

## Step by Step Answer:

**Related Book For**

## Fundamental Managerial Accounting Concepts

**ISBN:** 978-1259569197

8th edition

**Authors:** Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds