A company makes a single product which it sells for $30 per unit.Fixed costs are $18, 000 per month. The contribution/sales ratio is 40%.Next month the companys profit target is $36, 000.What sales volume is required to achieve next months profit target?

COST VOLUME PROFIT ANALYSIS

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A company makes a single product which it sells for $30 per unit.Fixed costs are $18, 000 per month. The contribution/sales ratio is 40%.Next month the company’s profit target is $36, 000.What sales volume is required to achieve next month’s profit target?

A	1, 200 units
B	1, 500 units
C	3, 000 units
D	4, 500 units

Explanation:

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ECONOMICS

COST ACCOUNTING

COST VOLUME PROFIT ANALYSIS