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Target Net Income

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A Company sells a single product for $20 per unit. If variable expenses are 60% of sales and fixed expenses total $9,600, what would total sales volume have to be in order to achieve net income of $10,000?

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Solution Summary

The solution explains how to calculate the sales volume necessary for a target net income

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The variable cost is 60% of selling price = 20X60%=12.
The contribution margin per unit is 20-12=8.
The ...

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