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A product sells for $20 per unit, and has a contribution margin ratio of 40%. Fixed expenses total $120,000 annually. How many units must be sold to yield a profit of $30,000?

12,500 units.

18,750 units.

20,000 units.

25,000 units.

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sales needed = fixed plus target profit... View the full answer

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The correct choice... View the full answer

Contribution margin= price per unit * contribution margin ratio = $20 * 40% = $8 Break even units =... View the full answer

Answer = 18750 Explanation Formula for desired profit = fixed cost + desired profit... View the full answer