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Corey Leach
on Dec 05, 2024

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If the contribution margin is $10, the selling price per unit is $25 and the fixed costs are $45 000, to earn a targeted net profit of $50 000 the total dollar value of sales must be at least

A) $10 000.
B) $112 500.
C) $122 500.
D) $237 500.

Targeted Net Profit

The specific amount of net income that a company aims to achieve within a certain period as part of its financial goals.

Selling Price Per Unit

The amount of money charged for each unit of a product or service sold.

Contribution Margin

The amount of revenue remaining after deducting variable costs, used to cover fixed expenses and generate earnings.

  • Evaluate the effects of adjustments in fixed and variable costs on the break-even point and target profit calculations.
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Nayana SanthoshDec 07, 2024
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