Reference: 08-05 Dorian Company Produces and Sells a Single Product. the Product

question 98

Multiple Choice

Reference: 08-05
Dorian Company produces and sells a single product. The product sells for $60 per unit and has a contribution margin ratio of 40%. The company's monthly fixed expenses are $28,800.
-If Dorian Company desires a monthly net income equal to 10% of sales, monthly sales will have to be:

• A)$120,000.
• B)$96,000.
• C)$45,600.
• D)$90,000.

---

Definitions:

Major Benefits

Significant advantages or positive outcomes that arise from a specific action, policy, or product.

Mergers

The process of combining two or more companies into a single entity, typically to achieve synergies, expand market share, or improve competitive positions.

Culture

The shared beliefs, values, practices, and social behaviors of a particular group or society.

Types of Cultures

Various classifications of societal or organizational cultures based on shared values, beliefs, and practices.