Course Contents SECOND CHANCE EXAM 1 Question 8 Timer Notes n 2017, X Company ha

Question

Course Contents SECOND CHANCE EXAM 1 Question 8 Timer Notes n 2017, X Company had revenue of $166,400 and incurred the following costs: Direct materials Direct labor [all variable] Variable overhead Fixed overhead Variable selling and administration Fixed selling and administration $28,288 14,976 29,952 15,100 18,200 If revenue and cost relationships are not expected to change in 2018, what must revenue be in order for X Company to earn $90,0007 75600 Submit Answer Incorrect. Tries 1/3 Previous Tries 9

Explanation / Answer

Contribution margin = Sales-Variable costs = 166400-28288-14976-29952-4992= $88192 CM ratio = 88192/166400= 53% Revenue for compnay to earn 90000 = (90000+15100+18200)/53%= $232642 or $232641.51

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