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Survey of Accounting Packet 3 Part.3 p. 3 That number of jobs seems doable to W.T. But the whole reason he's going into business
Survey of Accounting Packet 3 Part.3 p. 3 That number of jobs seems doable to W.T. But the whole reason he's going into business is to make a profit, Otherwise, he'll end up using all of his savings and he definitely doesn't have enough to last the entire school year, W.T.'s parents help him cover a number of his expenses. but How many jobs would W.T. need to complete to eam $400 What would that be in dollars? (1) Sales volume to earn desired profit (in units): Fixed costs + Desired profit = $220 +$400 $9.25 Contribution margin per job Remember: W.T. can't complete just part of a job. (2) Sales volume to earn desired profit (in dollars): .67.03 Jobs Required units x Sales price per unit = Sales in dollars required to earn desired profit x $ Check your work: Total sales $ Less: Total variable costs $ Total contribution margin $ Less: Total fixed costs $ =Total profit $ Question: Why isn't the profit exactly $400?
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