The contribution margin ratio of Kuck Corporation's only product is 75%. The company's monthly fixed expense is $456,000 and the company's monthly target profit is $42,000. Required: Determine the dollar sales to attain the company's target profit

$664,000

Explanation:

Kuck corporation has a contribution margin ratio of 75%

= 75/100

= 0.75

The company's monthly fixed expense is $456,000

The company's monthly target profit is $42,000

Therefore, the dollar sales to reach the target profit for the company can be calculated as follows

= Target profit+fixed expense/contribution margin ratio

= $42,000+$456,000/0.75

= $498,000/0.75

= $664,000

Hence the dollar sales to attain the company's target profit is $664,000

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