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Determine target sales needed to earn a 25000 target profit

            

           

Determine target sales needed to earn a $25,000 target profit

Information for Pueblo Company follows:

Solution

Calculate weighted average contribution margin :

Weighted average contribution margin = (26000/40000*40%+36000/60000*60%) = 62%

Target Sales = (35000+25000)/.62 = $96774

Determine target sales needed to earn a $25,000 target profit Information for Pueblo Company follows: SolutionCalculate weighted average contribution margin :

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