About the contribution margin ratio

Assignment Help Operation Management

Reference no: EM13906145

Rothe Company manufactures and sells a single product that it sells for $200 per unit and has a contribution margin ratio of 25%. The company's fixed costs are $43,000. If Rothe desires a monthly target operating profit equal to 20% of sales, sales will have to be (rounded):

Reference no: EM13906145

Questions Cloud

What amount should arthur company pay for this investment : Arthur Company is considering investing in an annuity contract that will return $46,000 annually at the end of each year for 15 years. What amount should Arthur Company pay for this investment if it earns a 7% return, rounded to whole dollars?

Total overhead would increase : Farrow Co. expects to sell 150,000 units of its product in the next period with the following results.

What we know in statics : Circle the cases that are solvable using what we know in Statics (hence circle thosewhich are fixed and internally/externally determinate)\

Considering purchasing equipment : Lefler Company is considering purchasing equipment. The equipment will produce semi-annual cash inflows of $22,000 for 3 years. Lefler requires a minimum annual rate of return of 8%. Assuming that the cash inflows are received at the end of each six-..

About the contribution margin ratio : Rothe Company manufactures and sells a single product that it sells for $200 per unit and has a contribution margin ratio of 25%. The company's fixed costs are $43,000. If Rothe desires a monthly target operating profit equal to 20% of sales, sales w..

What sales volume would the two stores have equal profits : Acme Sales has two store locations. Store A has fixed costs of $124,000 per month and a variable cost ratio of 80%. Store B has fixed costs of $197,000 per month and a variable cost ratio of 60%. At what sales volume would the two stores have equal p..

In a partnership agreement : In a partnership agreement, if the partners agreed to an interest allowance of 10% annually on each partner's investment, the interest allowances:

Determine the vactor componet of the member produced : Determine the vactor componet of the member produced by f about thediagonqalline af of the rectangular block

Identify the key financial ratios : Identify the key financial ratios

User Account

All Pages