Rothe Company Manufactures and Sells a Single Product That It

question 42

Multiple Choice

Rothe Company manufactures and sells a single product that it sells for £90 per unit and has a contribution margin ratio of 35%. The company's fixed expenses are £46,800. If Rothe desires a monthly target net operating income equal to 15% of sales, sales will have to be (rounded)

• A)1,486 units.
• B)3,467 units.
• C)1,040 units.
• D)2,600 units.

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