Question 6, Part 3 Crandall Company sells flags with team logos. Crandall has fixed costs of $583,200 per year plus variable costs of $4.80 per flag. Each flag sells for $12.00.Read the requirements.Operating Income (Loss) Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn $33,000 in operating income. (Round the required sales in dollars up to thenearest whole dollar. For example, $10.25 would be rounded to $11. Abbreviation used: CM = contribution margin.)( Fixed costsTarget profit ) +CM ratio= Required sales in dollars+( $ 583,200$ 33,000) +60.00%1,027,000

The contribution margin is computed by subtracting the variable cost from the sale revenue. The…

Answered: get profit )+ CM ratio Required sales…

Business

Accounting

get profit )+ CM ratio Required sales in dollars 33,000 ) + 60.00 % 1,027,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 1SEQ: Mario Company is considering discontinuing a product. The costs of the product consist of $20,000...

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Question

Question 6, Part 3

Crandall Company sells flags with team logos. Crandall has fixed costs of $583,200 per year plus variable costs of $4.80 per flag. Each flag sells for $12.00.
Read the requirements.
Operating Income (Loss)

Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn $33,000 in operating income. (Round the required sales in dollars up to the
nearest whole dollar. For example, $10.25 would be rounded to $11. Abbreviation used: CM = contribution margin.)
( Fixed costs
Target profit ) +
CM ratio
= Required sales in dollars
+
( $ 583,200
$ 33,000
) +
60.00
%
1,027,000

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