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If Robin has fixed costs of$240,000, the amount of sales required to earn the desired return is
a. $375,000.
b. $400,000.
c. $1,000,000.
d. $1,200,000.
answer is >> D
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thanks for all
Option d:
240,000 /20% =1,200,000
20% is derived as the following::
(30% -10%).
10% is derived as the following:
(6% /60%)
END.
(D) is the Correct Ans.
1,200,000
d. $1,200,000.---------------------------
Answer is D.1,200,000
Let sales be x
Contribution - Fixed Cost = Profit
0.3x -240,000 =0.1x
Therefore Sales =1,200,000
D )12,00,000 is the right answer..
Profit = Contribution - Fixed Cost
Let sales be K
6/(100-40)K = (30/100)K -240,000
0.1K =0.3K -240,000
0.2K =240,000
so K =12,00,000.
D has to be the right answer....
agree with answer D is true >>>>>>>>>>>>>>>>>>
the answer is C 1000,000 ,
Contribution - Fixed Cost =6% Sales
30%Sales -240,000=6%Sales
Sales(30-6)%=240,000
Sales =1000,000
let me know if its not the right answer .
Answer is D:
Assume Sales is "K"
(0.3k -240,000) - (0.3k-240,000)x0.4 =0.06k
k =1,200,000
