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Business, 20.09.2019 19:20 andy6128

Stewart'sstewart's steel parts produces parts for the automobile industry. the company has monthly fixed expenses of $ 630 comma 000$630,000 and a contribution margin of 7070% of revenues. stewartstewart feels like he's in a giant squeeze play: the automotive manufacturers are demanding lower prices, and the steel producers have increased raw material costs. stewart'sstewart's contribution margin has shrunk to 4040% of revenues. the company's monthly operating income, prior to these pressures, was $ 105 comma 000$105,000. read the requirement 1. to maintain this same level of profit, what sales volume (in sales revenue) must stewartstewart now achieve? begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach. ( fixed expenses + operating income ) / contribution margin ratio = target sales in dollars (round your answer up to the nearest whole dollar.) stewart must now achieve sales of $ to maintain the same level of profit.

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