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Q: How much is the required contribution for SSS self employed member?
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How much sales are required to earn a target net income of 128000 if total fixed costs are 160000 and the contribution margin ratio is 40 percent?

Sales amount required is as follows: Required sales = (fixed cost + net income)/ contribution margin ratio required sales = 288000/.4 Required sales = 720,000 Prove: Sales = 720,000 Variable cost = 60% of sales = 432,000 Contribution margin = 288,000 Less: fixed cost = 160,000 Net income = 128,000


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