Managerial Accounting

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Computation of sales volumes with three products


GG Corporation installs three types of alarm systems. For the current year, fixed costs totaled \$315,000 and target pretax profit was \$190,000. Additional information:

Alarm System Unit Contribution Margin Number Sold
Type X \$50 1,000
Type Y \$45 1,100
Type Z \$38 1,300

Determine the sales volumes (number of alarm systems for each type) that are needed to achieve the target profit for the year: