Question

Tech Solutions Inc. produces two different products with the following monthly data for October: Digital Cameras Tripods Total Selling price per unit $300 $100 Variable cost per unit $240 $ 60 Expected unit sales 28,000 7,000 35,000 Sales mix 80% 20% 100% Fixed costs $700,000 Assume the sales mix remains the same at all levels of sales. How many units in total must be sold to earn a monthly profit of $252,000? 4,500 9,520 17,000 12,500

Answer 1

Units must be sold in order to earn	17,000.00
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Statementshowing Computations
Paticulars	Digital Cameras	Tripods	Total
Selling price per unit	300.00	100.00
Variable cost per unit	240.00	60.00
Contribution margin per unit	60.00	40.00
Expected sales	0.80	0.20
Weighted contribution per unit	48.00	8.00	56.00
Fixed costs			700,000.00
Monthly profit			252,000.00
Total contribution desired			952,000.00
Units must be sold in order to earn			17,000.00