Homework Answers
Contribution margin=Sales-Variable cost
=(39-21)=$18 per unit
a.Breakeven=Fixed expenses/Contribution margin
=32940/18
=1830 units
b.Target Contribution margin=Fixed cost+Target profits
=(32940+18270)=$51210
Hence unit sales=Target Contribution margin/Contribution margin per unit
=51210/18
=2845 units
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