Question

O Do not refresh or close your browser while attempting your quiz. You will not be able to be auto-submitted. ook 2 3 4 5 6 7 8 9 10 11 Total 14 15 16 17 18 19 Answ Unans Fill in the blanks. Time 00 Calculate the contribution margin per unit given the provided data, then use this to calculate #of units in sales required to achieve a profit of $7,500: Hour Sales revenue per unit 550 525 PAUSE Variable cost per unit PowerPoint Contribution margin per unit 5 Discussion 1 Fixed costs $10,000 - 5 Discussion 2 Target Profit er 5 Quiz Break even of units Previous Skip Save & Next → wer: 121 HOY 12, 2019 10:26:09 AM Easton Standard Time

Answer 1

Contribution margin per unit = sales revenue per unit - variable cost per unit

= $50 - $25 = $25

here, we need such level of sales units which will cover both fixed costs and target profit.

therefore

Break even point (unit sales) = (fixed costs + target profit)/contribution margin per unit

= ($10000 + $7500)/$25

= $17500/$25

= 700 units