Homework Answers
Answer : A = 20,000.
>> Target Sales units = ( Fixed cost + Desired profit ) / Contribution margin per unit.
>> Contribution margin per unit = $ 50 - $ 30 = $ 20.
>> Target sales units = ( $ 300,000 + $ 100,000 ) / $ 20 = 20,000 Units.
>> If ABC sells 20,000 Units it can get a profit of $ 100,000.
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