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The Contribution Margin Ratio of Donath Corporation's Only Product Is

question 129

Essay

The contribution margin ratio of Donath Corporation's only product is 65%. The company's monthly fixed expense is $573,300 and the company's monthly target profit is $9,100.
Required:
Determine the dollar sales to attain the company's target profit. Show your work!


Definitions:

Net

Net signifies the final amount remaining after all deductions have been made, such as expenses, taxes, or discounts, from a total or gross amount.

Discount Period

The time frame during which a discount is offered or can be claimed.

Credit Period

The length of time that a buyer is given to pay for a purchase before interest is charged or penalties apply.

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