Target Profit Scrushy Company sells a product for $150 per unit. The variable cost is $110...
Target Profit
Scrushy Company sells a product for $150 per unit. The variable cost is $110 per unit, and fixed costs are $200,000.
Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $50,000.
| a. Break-even point in sales units | units |
| b. Break-even point in sales units if the company desires a target profit of $50,000 |
Homework Answers
a) Break even point units = Fixed cost/Contribution margin per unit = 200000/(150-110) = 5000 Units
b) Break even point units if target profit is = (200000+50000)/40 = 6250 Units
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Target Profit
Scrushy Company sells
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