The following monthly data in contribution format are available for the MN Co. and its only product: Total Per Unit Sales……………………………………………………………. $83,700 $279 Variable expenses………………………………………. 32,700 109 Contribution margin…………………………………… 51,000 $170 Fixed expenses……………………………………………. 40,000 Net operating income…………………………………. $11,000 The Company is currently using 70% of its available capacity. selling 300 units of product per month. b. What is the sales volume required to achieve a target profits margin 20%?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following monthly data in contribution format are available for the MN Co. and its only product: Total Per Unit Sales……………………………………………………………. $83,700 $279 Variable expenses………………………………………. 32,700 109 Contribution margin…………………………………… 51,000 $170 Fixed expenses……………………………………………. 40,000 Net operating income…………………………………. $11,000 The Company is currently using 70% of its available capacity. selling 300 units of product per month. b. What is the sales volume required to achieve a target profits margin 20%?
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