Question

Ferkil Corporation manufacturers a single product that has a selling price of $15.00 per unit. Fixed expenses total $51,000 p
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Answer #1

Solution:

The option 'b, 11,000 units' is correct option.

Explanation:

Contribution margin = Fixed costs / selling units

= $51,000 / 8,500 units =$6

Contribution margin = $6

Target profit = $15,000 + $51,000 =$66,000

Sales in units must be:

$66,000/ $6

= 11,000 units

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