Compute the dollar sales that are required to earn a target

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Lin Corporation has a single product, whose selling price is $200 and whose variable cost is 60% of sales price. The company's monthly fixed expenses are $60,000.

Required:

Problem 1. Using the equation method, compute the unit sales that are required to earn a target before-tax profit of $10,000.

Problem 2. Using the contribution margin approach, compute the dollar sales that are required to earn a target before-tax profit of $15,000.

Reference no: EM132706322

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