What level of sales in dollars is required to achieve level

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Reference no: EM133004029

Use the following information for ABC Sales to answer questions 7 and 8ABC Sales has the following relationships:

Sales $400,000

Variable Costs $150,000

Fixed Costs $300,000

Problem 1: What level of Sales Dollars is required for ABC to break-even?

a. $400,000

b. $933,334

c. $500,000

d. $480,000

Problem 2: ABC wants to have a minimum Net Income of $40,000 (target profit). What level of Sales in dollars is required to achieve this level of Net Income?

a. $ 544,000

b. $ 933,334

c. $ 973,334

d. $1,040,000

Reference no: EM133004029

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