Target Profit
Trailblazer Company sells a product for $225 per unit. The variable cost is $115 per unit, and fixed costs are $660,000.
Determine (a) the break-even point in sales units and (b) the break-even point in sales units required for the company to achieve a target profit of $191,400.
a. Break-even point in sales units | units | |
b. Break-even point in sales units required for the company to achieve a target profit of $191,400 |
a.
Breakeven point:
= $660,000 / ($225 - $115)
= 6,000 units
b.
Breakeven point:
= ($660,000 + $191,400) / ($225 - $115)
= 7,740 units
Target Profit Trailblazer Company sells a product for $225 per unit. The variable cost is $115...
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