Question

Ferkil Corporation manufacturers a single product that has a selling price of $25.00 per unit. Fixed expenses total $33,000 p

0 0
Add a comment Improve this question Transcribed image text
✔ Recommended Answer
Answer #1
SP 25
Fixed cost 33000
Break even units 5500
Target profit 12000
Target sale ?
Break even units= Fixed cost/contribution per unit
Contribution per unit= Fixed cost/break even units
= 33000/5500
6
Contribution margin ratio = Contribution Margin/ Selling price
6/25*100
24.00
24%
Sales to achieve target sales = (Fixed cost+Target Profit)/Contribution margin ratio
= (33000+12000)/(.24)
= 187500
Target units Sales to achieve target sales/selling price
187500/25
7500
Hence, answer is 7500 units
Hi mate,
I would be grateful to you if you can provide a thumbs up and write one beautiful comment. It will improve my rating and let me continue my journey here.
In case of doubt, please comment. I will consider myself fortunate if I can help you.
All the best for your bright future.
Add a comment
Know the answer?
Add Answer to:
Ferkil Corporation manufacturers a single product that has a selling price of $25.00 per unit. Fixed...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT