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The following information relate to AAA Company Sales price per unit $ 50 Variable costs per unit 30 Total fixed costs 40,000 (10 marks) Required:
The following information relate to AAA Company
Sales price per unit | $ 50 |
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Variable costs per unit | 30 |
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Total fixed costs | 40,000 |
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(10 marks)
Required:
1- Calculate Contribution margin per unit
2- Calculate Contribution margin ratio
3- Calculate required units to achieve target profit $460,000
4- Calculate required units to breakeven
5- Calculate required sales dollars to breakeven
6- Prove your answer in requirements 4
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