Calculation of sale in dollars & sale volume | ||||||
Contribution margin = sale-variable cost | ||||||
contribution margin = 35 p.u -22.05 p.u = 12.95 p.u | ||||||
contribution ratio = 12.95/35 = 37% | ||||||
sale = fixed cost+desired profit/contribution ratio | ||||||
sale = (110055+57000)/0.37 | ||||||
sale = 451500 | ||||||
sale volume in units = (fixed cost+desired profit)/contribution p.u | ||||||
sale volume in units = (110055+57000)/12.95 | ||||||
sale volume in units = 12900 |
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