If the fixed costs are $2,400,targeted operating profit is $1,200,selling price per unit is $2,and the contribution margin ratio is 40%,then the required sales volume is 9,000 units.

Question

Quizplus · Accepted Answer

To find the required sales volume, use the formula: Required Sales Volume = (Fixed Costs + Targeted Operating Profit) / Contribution Margin per Unit. The contribution margin per unit is $2 * 40% = $0.80. Therefore, Required Sales Volume = ($2,400 + $1,200) / $0.80 = 4,500 units, not 9,000 units.

If the Fixed Costs Are $2,400,targeted Operating Profit Is $1,200,selling