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Question
Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are$135 per unit. The company’s annual fixed costs are $562,500. Management targets an annual pretax income of$1,012,500. Assume that fixed costs remain at $562,500. Compute the (1) unit sales to earn the target income and (2) dollar sales to earn the target income.
Solution
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Answered 1 year ago
Step 1
1 of 13For this problem we are going to compute for sales in dollars and in units to achieve the target income.
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