A Company sells its product for £190. In addition, it has a variable cost of 65...
A Company sells its product for £190. In addition, it has a variable cost of 65 percent of sales and total fixed costs of £180,000. How many units must be sold in order to obtain a before-tax profit of £120,000?
Homework Answers
| Total fixed costs | 180000 | |
| Add: Before-tax profit | 120000 | |
| Required Total Contribution margin | 300000 | |
| Divide by Contribution margin per unit | 66.50 | =190*(1-65%) |
| Units to be sold | 4511 | (Rounded off) |
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