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QUESTION 16 A company has total fixed costs of $200,000. It produkt sells for $25 per unit and variable costs amount to 515 p

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Answer #1

Solution:

25,000 units

Explanation:

selling price per unit = $25

variable cost per unit = $15

Contribution per unit = 25 - 15 = $10

Fixed cost = 200,000

Target income = $50,000

sales (units) = (fixed cost + desired profit) / contribution per unit = ($200000 + $50,000) / 10 = 250,000 / 10 = 25,000units

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