Simmons Company has required sales of $1,500,000 to meet its target net income. It has fixed costs of $200,000 and the contribution margin ratio is 40%. The company’s target net income is

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Simmons Company has required sales of $1,500,000 to meet its target net income. It has fixed costs of $200,000 and the contribution margin ratio is 40%. The company’s target net income is

A. $400,000.
B. $500,000.
C. $1,300,000.
D. $600,000.

Answer: A

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