Question
A business unit sells a product for $5000, and their CEO wants them to earn a profit of 16% of the fixed costs of the
A business unit sells a product for $5000, and their CEO wants them to earn a profit of 16% of the fixed costs of the product.
Fixed costs are $1250000, and the product variable costs per unit are $2496.
How many units do they need to sell to break-even and earn the desired profit of 16%?
(Round to nearest whole number; no decimal places needed.)
plese solve with the formulas and explain it.
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Management Control Systems Performance Measurement Evaluation And Incentives
Authors: Kenneth Merchant, Wim Van Der Stede
4th Edition
1292110554, 978-1292110554
