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Bascatt Company currently distributes a product that sells for $58.00 per unit and has a contribution margin ratio of 30%. The company's fixed expenses are $435,000 per year. The company plans to sell 30,000 units this year.
Question 1: By using a new supplier, the company believes it can reduce its variable expenses by $5.80 per unit. If the company decides use the new supplier, what dollar sales is required to attain a target profit of $261,000?
Multiple Choice
Option 1: $1,087,500
Option 2: $2,320,000
Option 3: $696,000
Option 4: $1,740,000
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