Dagnan Corporation Produces and Sells a Single Product Whose Contribution

question 134

Essay

Dagnan Corporation produces and sells a single product whose contribution margin ratio is 66%.The company's monthly fixed expense is $667,920 and the company's monthly target profit is $72,600.
Required:
Determine the dollar sales to attain the company's target profit.Show your work!

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Definitions:

Operating Activities

Activities that are directly related to the primary revenue-generating operations of a business.

Net Cash

The difference between a company’s total cash inflows and outflows within a given period, reflecting the company's liquidity position.

Financing Activities

Transactions and events where a company generates or pays back capital, including issuing shares or debt and dividend payments.

Balance Sheet

A financial statement that presents a company’s financial position at a specific point in time, detailing assets, liabilities, and shareholders' equity.