Snow Company sells a product with a contribution margin ratio of 65%. Fixed costs are $ 4,000

Question:

Snow Company sells a product with a contribution margin ratio of 65%. Fixed costs are $ 4,000 per month. What amount of sales (in dollars) must Snow Company have to earn an operating income of $ 2,500? If each unit sells for $ 25, how many units must be sold to achieve the desired operating income?

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...