Question
In: Computer Science
Contribution margin
XYZ Enterprises Corporation's single product appear below:
|
Selling Price Per Unit |
Rs. 150 |
|
Variable Expense Per Unit |
90 |
|
Fixed Expenses for the month |
424,840 |
Total Sales in amount to attain the company's monthly target profit of Rs. 50,000 is closest to:
Solutions
Expert Solution
Contribution margin = Sales - Variable expenses
= Rs. 150 - 90
= Rs. 60 per unit
Contribution margin ratio = Contribution margin / Sales
= Rs. 60 / Rs. 150
= 40%
Total Sales to attain the target profit = (target profit + Fixed expenses) / Contribution margin ratio
= (Rs. 50,000 + Rs. 424,840) / 40%
= Rs. 1,187,100
Total Sales to attain the target profit = (target profit + Fixed expenses) / Contribution margin ratio
ANIL KUMAR answered 3 years agoRelated Solutions
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