Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started