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Cost-Volume-Profit (CVP) Analysis for Target Profit Calculation : A manufacturing company wants to achieve a target profit of $50,000. The company sells a single product
Cost-Volume-Profit (CVP) Analysis for Target Profit Calculation: A manufacturing company wants to achieve a target profit of $50,000. The company sells a single product for $100 per unit, with variable costs of $60 per unit. Calculate the number of units the company needs to sell to achieve its target profit and discuss how this analysis guides managerial decision-making and pricing strategies.
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