SBD Phone Company sells its waterproof phone case for $112 per unit.
SBD Phone Company sells its waterproof phone case for $112 per unit. Fxed costs total $167,000, and variable costs are $47 per unit. Compute the units of product that must be sold to earn pretax income of $203.500.
Homework Answers
|
contribution margin per unit |
selling price-variable cost |
112-47 |
65 |
|
Fixed cost |
167000 |
||
|
pre tax target profit |
203500 |
||
|
break even point in units |
(fixed cost + target profit)/contribution margin per unit |
(167000+203500)/65 |
5700 |
|
Numerator |
/ |
denominator |
Units to achieve target |
|
370500 |
/ |
65 |
5700 |
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SBD Phone Company sells its waterproof phone case for $112 per unit.
SBD Phone Company sells its waterproof phone case for $108 per unit.
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