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Betsy Company sells a single product. They want to make a profit of $59,049 Unit Variable costs = $14 Unit selling price is = $36 Fixed costs = $13,403 How many units do they need to sell to make the desired profit? Round your units UP to the nearest whole number.

Respuesta :

Samawati

Answer:

$3,293

Explanation:

Using the contribution margin concept

The desired profits will be breakeven units plus the desired profits divided by contribution margin.

Break-even units = Fixed costs / contribution margin

= $13,403 /(selling price - variable costs)

=$13,403 /22

=609 units

desire profits =$59,049

Contribution margin = 22,

Units to achieve the profits are $59,049/22

=2684.04

Betsy needs to sell

609+ 2684 = 3,293

=$3,293

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