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Yellow Dot, Inc sells a single product for $12 Variable costs are

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Yellow Dot, Inc. sells a single product for $12. Variable
costs are $4 per unit and fixed costs total $140,000 at a
volume level of 7,800 units. What dollar sales level would
Yellow Dot have to achieve to earn a target profit of
$60,000?
Solution
Contribution margin ratio= (12-4)/12= 0.667
dollar sales level = (140000+60000)/0.667= $300,000

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Yellow Dot, Inc. sells a single product for $12. Variable costs are $4 per unit and fixed costs total $140,000 at a volume level of 7,800 units. What dollar sales level would Yellow Dot have to achieve to earn a target profit of $60,000? Solution Contribution margin ratio= (12-4)/12= 0.667 dollar ...
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