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Managerial Accounting

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Calculating Target Profit for Shoes

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The shoe division of an organization designed a new shoe that retails for \$95 with a contribution margin ratio of 32 percent. Fixed costs are \$100,000. What is the amount in actual sales dollars needed to make a profit of \$45,000?

A

145,000

B

$310,050

C

$312,500

D

$453,150