If a product has a sales price of $50 per unit and a contribution margin of...
If a product has a sales price of $50 per unit and a contribution margin of $15 per unit and the company desires a before tax profit of $180,000, how many additional units over the breakeven amount need to be sold?
Homework Answers
Additional Units must be Sold after the Break-Even Units
Additional Units Must be Sold = Desired Profit / Contribution Margin Per Unit
= 180,000 /15 = 12,000 Units
Answer : 12,000 Units
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