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The contribution margin ratio of Candle Corporation's only product is 67%. The company's monthly fixed expense is $454,700 and the company's monthly target profit is $40,700. Required: Determine the dollar sales to attain the company's target profit.

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abiolataiwo2015

The dollar sales to attain the company's target profit is $739,402.99.

Dollar sales

Using this formula

Dollar sales= Target profit+fixed expense/contribution margin ratio

Let plug in the formula

Dollar sales= $40,700+$454,700/0.67

Dollar sales= $495,400/0.67

Dollar sales=$739,402.985

Dollar sales=$739,402.99 (Approximately)

Therefore the dollar sales to attain the company's target profit is $739,402.99.

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