Question

During FY 2018, Adelphi Company reported sales of $400,000, a contribution margin of $7.00 per unit, fixed costs of $100,000, and net income of $25,000. Use this information to determine the number of units Adelphi sold during FY 2018. (Round answer to nearest whole number)

Answer 1

Particulars	Amount
Sales	$400,000
Contribution margin per unit	$7.00
Fixed Costs	$100,000
Net income	$2500

	Unit	Price	Total Value
Sales	17857		$400,000
-Variable cost	17857		($275000)
Contribution		$7.00	$1,25,000
-Fixed Cost			($100,000)
Net income			$25000

Total contribution= Fixed cost+ Net income

                                    = $100,000+$25000= $1,25,000

Number of unit sold= Total contribution/ Contribution Margin per unit

                                    =$125,000/ $7=17857 Units