Asked by
Corey Leach
on Dec 05, 2024Verified
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.
Verified Answer
NS
Learning Objectives
- Evaluate the effects of adjustments in fixed and variable costs on the break-even point and target profit calculations.