Total sales amount to $2,000,000 Food generates 75% of total sales Food cost is $500,000 Beverages generated sales of $300,000 with a CMR of 0.85 The gift store generated the remaining sales at a cost of 30% Tax rate is 27% Annual fixed costs total $1,500,000 Using this information, answer the following questions: 1. What are the total sales required? Group of answer choices $2,142,857.14 3,500,500.15 4,256,360.07
Total sales amount to $2,000,000 Food generates 75% of total sales Food cost is $500,000 Beverages generated sales of $300,000 with a CMR of 0.85 The gift store generated the remaining sales at a cost of 30% Tax rate is 27% Annual fixed costs total $1,500,000 Using this information, answer the following questions: 1. What are the total sales required? Group of answer choices $2,142,857.14 3,500,500.15 4,256,360.07
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4CE: Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at...
Related questions
Question
Total sales amount to $2,000,000
Food generates 75% of total sales
Food cost is $500,000
Beverages generated sales of $300,000 with a CMR of 0.85
The gift store generated the remaining sales at a cost of 30%
Tax rate is 27%
Annual fixed costs total $1,500,000
Using this information, answer the following questions:
1. What are the total sales required?
Group of answer choices
$2,142,857.14
3,500,500.15
4,256,360.07
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning