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desires to earn an operating profit of $ 6 , 3 0 0 per month. ( Abbreviation used; C M = contribution margin. ) Read
desires to earn an operating profit of $ per month. Abbreviation used; contribution margin.
Read the requirements.
Calculate the required sales in units to earn the target profit using the equation method.
First, select the formula to compute the target profit.
Rearrange the formula you determine above and compute the required sales in units.
The required sales in units to earn the target profit using the equation method is
Calculate the required sales in units to earn the target profit using the contribution margin method.
table Required sales in units
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