To calculate the number of units that must be sold to make a profit, you first need to determine the contribution margin per unit. This is the selling price per unit minus the variable cost per unit. In this case, the contribution margin is already given as $6.

Next, you need to calculate the total contribution margin needed to cover both the fixed costs and the desired profit. This is done by adding the fixed costs and the desired profit together. In this case, this would be $12,000 (fixed costs) + $36,000 (desired profit) = $48,000.

Finally, you divide the total contribution margin needed by the contribution margin per unit to find the number of units that must be sold. In this case, this would be $48,000 / $6 = 8000 units.

So, the number of units that must be sold to make a profit of $36,000 is 8000 units.

Question

To calculate the number of units that must be sold to make a profit, you first need to determine the contribution margin per unit. This is the selling price per unit minus the variable cost per unit. In this case, the contribution margin is already given as $6.

Next, you need to calculate the total contribution margin needed to cover both the fixed costs and the desired profit. This is done by adding the fixed costs and the desired profit together. In this case, this would be $12,000 (fixed costs) + $36,000 (desired profit) = $48,000.

Finally, you divide the total contribution margin needed by the contribution margin per unit to find the number of units that must be sold. In this case, this would be $48,000 / $6 = 8000 units.

So, the number of units that must be sold to make a profit of $36,000 is 8000 units.

Knowee AI · Accepted Answer

To calculate the number of units that must be sold to make a profit, you first need to determine the contribution margin per unit. This is the selling price per unit minus the variable cost per unit. In this case, the contribution margin is already given as $6.

Next, you need to calculate the total contribution margin needed to cover both the fixed costs and the desired profit. This is done by adding the fixed costs and the desired profit together. In this case, this would be $12,000 (fixed costs) + $36,000 (desired profit) = $48,000.

Finally, you divide the total contribution margin needed by the contribution margin per unit to find the number of units that must be sold. In this case, this would be $48,000 / $6 = 8000 units.

So, the number of units that must be sold to make a profit of $36,000 is 8000 units.

If a product has a selling price of $10, a contribution margin of $6 and fixed costs of $12 000, to make a profit of $36 000, the number of units that must be sold is:Group of answer choices4800.8000.12 000.2000.

Question

Solution

Similar Questions

Upgrade your grade with Knowee