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.

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Definitions:

Collateral Agreements

Legal contracts where a borrower pledges an asset as security for a loan, which the lender can claim if the loan is not repaid.