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1. The following data related to ABC Corporation Selling price /u AED 15 Variable cost per unit AED 10 Fixed costs AED 3000 T

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Answer #1

contribution margin is difference between sales price and variable cost

contribution margin should cover up target profit and fixed costs.

1) units to be sold= (fixed cost+target income)/contribution margin per unit

contribution margin = sales-variable cost

=$15-$10

=$5

units to be sold= (fixed cost+target income)/contribution margin per unit

=($3,000+$5,000)/$5

=$8000/5

=1,600 units

sorry we can answer only one question per post

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