Current Attempt in Progress For Ivanhoe Company, variable costs are \( 70 \% \) of sales, and fixed costs are \( \$ 167,700 \). Management's net income goal is \( \$ 64,500 \). Compute the required sales in dollars needed to achieve management's target net income of \( \$ 64,500 \). (Use the contribution margin approach.) Required sales \( \$ \).

To find the required sales in dollars using the contribution margin approach, we first calculate the contribution margin ratio. Given that variable costs are 70% of sales, the contribution margin is 30% (100% - 70%). Next, we can use the following formula: \[ \text{Required Sales} = \frac{\text{Fixed Costs} + \text{Target Net Income}}{\text{Contribution Margin Ratio}} \] Plugging in the values: \[ \text{Required Sales} = \frac{167,700 + 64,500}{0.30} = \frac{232,200}{0.30} = 774,000 \] Therefore, the required sales needed to achieve management's target net income of \( \$64,500 \) is \( \$774,000 \).