Logsdon Corporation Produces and Sells a Single Product Whose Contribution

question 311

Multiple Choice

Logsdon Corporation produces and sells a single product whose contribution margin ratio is 63%. The company's monthly fixed expense is $720,720 and the company's monthly target profit is $28,000. The dollar sales to attain that target profit is closest to:

• A) $471,694
• B) $454,054
• C) $1,188,444
• D) $1,144,000

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Definitions:

Finished Goods

Inventory items that are completed and ready for sale.

Raw Materials

The basic materials and substances used in the initial stages of production.

Schedule of Cost

A detailed report listing all costs associated with a project, including direct, indirect, fixed, and variable costs.

Manufactured

Refers to items that have been produced or constructed from raw materials in a factory setting.