Homework Answers
Answer
--With workings
| A | Target Income | $80,000 | |
| B | Fixed expenses | $400,000 | |
| C = A+B | Contribution margin required for target income | $480,000 | |
| D | Sale price per unit | $12 | |
| E | Variable cost per unit | $8 | |
| F = D - E | Contribution margin per unit | $4 | |
| G = C/F | Units to be sold to generate target profits | 120000 | Answer |
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