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Calculate Sales Amount From Ratio and Costs

If the contribution margin ratio is 65% and fixed costs are $15,000, what would sales have to be for a before-tax net income of $50,000? (Round your answer to the nearest dollar.)

A. $100,000
B. $65,000
C. $42,250
D. $23,077

Solution Summary

This solution contains clear steps to calculate the sales amount from contribution margin ratio and fixed costs.