Question
Calihan Company has a product contribution margin of $50. The fixed costs are $300,000. Calihan Company desires a target profit before taxes of $150,000 per
Calihan Company has a product contribution margin of $50. The fixed costs are $300,000.
Calihan Company desires a target profit before taxes of $150,000 per year.
A. How many units must be sold to achieve the target profit?
B. If fixed costs increase 5%, how many units must be sold to achieve the target profit?
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Engineering Economy
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
15th edition
132554909, 978-0132554909
