Question
Asked Oct 18, 2019
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Betsy Company sells a single product.
They want to make a profit of $50,641
Unit Variable costs $17
Unit selling price is $22
Fixed costs $16,166
How many units do they need to sell to make the desired profit?
Round your units UP to the nearest whole number.
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Betsy Company sells a single product. They want to make a profit of $50,641 Unit Variable costs $17 Unit selling price is $22 Fixed costs $16,166 How many units do they need to sell to make the desired profit? Round your units UP to the nearest whole number.

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Expert Answer

Step 1

Compute the Contribution margin per unit:

 

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Amount (S) Particulars Selling price per unit Less: Variable cost per unit Contribution per unit $22 $17 $5

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Step 2

Compute the number of units required to make des...

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Contribution margin per unit (A) Fixed costs (B) Desired profit (C) $5 $16,166 $50,641 The number of units required to make desired profits 13,361 [(B)+(C) (A)

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Cost Volume Profit Analysis

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