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Roadrunner Ltd sells biscuits in boxes to supermarkets throughout the country. In the financial year ended 30 June 2021, the company sold a total of
Roadrunner Ltd sells biscuits in boxes to supermarkets throughout the country. In the financial year ended 30 June 2021, the company sold a total of 500,000 boxes of biscuits at $4 per box. The gross profit margin achieved on these sales was 75%. Operating expenses consisted of the following: Advertising Staff salaries Other administrative expenses $ 100,000 500,000 600,000 Cost of sales are considered as variable costs, and all other expenses are treated as fixed costs. Required: d) Roadrunner Ltd plans to achieve a target net profit of $750,000 in the next financial year. How many boxes of biscuits should be sold to achieve this target net profit? (1 mark)
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