Computation the sales in units is:
Sales in units = (Fixed expenses + Target profit) / Total contribution margin
= ($48,000 + $14,000) / $8
= $62,000 / $8
= 7,750 units
Hence, the sales in units is 7,750 units.
Working notes:
Computation the total contribution margin is:
Total contribution margin = Fixed costs / Number of units sold
= $48,000 / 6,000
= $8
Hence, the total contribution margin is $8.
up V ENIE Ferkil Corporation manufacturers a single product that has a selling price of $20.00...
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