Estimation of Total Sales in Order to earn Some Profits

Question

X Company estimates the following information for its three products for next year:

                               Product                       Revenue               Total CM

                                  A                               $613,740              $301,659

                                  B                                 241,808                  68,408

                                  C                                 450,712                 255,212

If next year’s fixed costs are expected to be $245,000, what must total sales be in order for X Company to earn $130,000?

Summary: This question belongs to accounting and discusses about a company’s total sales be in order to earn some profits.

Total word count: 26