Question: EXERCISE 8-12 Performing Break-Even and Target Profit Analysis [LO2- CC5, 6, 7] Lima Inc. wishes to earn a before-tax profit equal to 20% of sales

EXERCISE 8-12 Performing Break-Even and Target Profit Analysis [LO2- CC5, 6, 7] Lima Inc. wishes to earn a before-tax profit equal to 20% of sales revenue. Its monthly fixed costs are $50,000 and contribution margin ratio is equal to 30%. Required: 1. Determine the annual break-even sales. 2. Compute the sales level required to achieve the desired profit level.

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