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PJM Company: use contribution margin ratio to determine sale

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PJM Company incurs annual fixed costs of $310,000. Variable costs for PJM's products are $24 per unit and the sales price is $30 per unit. PJM desires to earn a profit of $50,000.

Use the CONTRIBUTION MARGIN RATIO approach to determine the SALES VOLUME in DOLLARS first and the NUMBER OF UNITS required earning the desired profit.

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This solution is comprised of a detailed explanation to determine sales volume.

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PJM Company incurs annual fixed costs of $310,000. Variable costs for PJM's products are $24 per unit and the sales price is $30 per unit. PJM desires to ...

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