Managerial Accounting

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Target Profit in Dollars for Airbags

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Takata Corp manufactures airbags for sale to other companies. The airbags sell for \$318. The contribution margin per unit is \$101.76, and the annual fixed costs are \$718,000.

What is the amount in actual sales dollars needed to make a target profit of \$100,000?

A

$2,556,250

B

$1,202,941

C

$2,272,222

D

$1,575,000