Question 2 (4 marks)

Sweet donuts has the following information for January 2022

Unit selling price $20

Unit Variable cost $12

Total Fixed costs $60,000

Actual units sold 15,000

Target profit $40,000

Required

1. Calculate the contribution margin per unit (1 mark)

2. Calculate the Break-even units (1 mark)

3. Calculate the Break-even point in dollars (1 mark)

4. How many units Sweet Donut should sell to achieve the target profit (1 mark)