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A Company Has Fixed Costs of $270,000,a Unit Contribution Margin

Question 91

Multiple Choice

A company has fixed costs of $270,000,a unit contribution margin of $14,and a contribution margin ratio of 55%.If the firm wants to earn a target $60,000 pretax income,what amount of sales must the company make (rounded to the nearest whole dollar) ?


A) 490,909.
B) 330,000.
C) 109,090.
D) 381,818.
E) 600,000.

Correct Answer:

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