The break-even point in dollar sales for Rice Company is $480,000 and the companys contribution margin ratio is 40 percent. If Rice Company desires a profit of $84,000, how much would sales have to total? Answer: Fixed cost $288,000 Variables cost $192,000 (0.4)= $76,800 each marginal $ sale $0.40 variables MS=(84,000/0.6)=$140,000 Break even sale + marginal sale $480,000 + 140,000 = $620,000 Fixed cost + variable cost = total cost $288,000+$76,800=$364,800 Profit =480,000-364,800 Profit= $115,200 my answer came back wrong, can you please help me.. thanks
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