Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 112,500 15 Contribution margin 187,500 $ 25 Fixed expenses 31,000 Net operating income $ 156,500 The unit sales to attain a target profit of $199,000 is:
Added by Gregg M.
Close
Step 1
This is $31,000 (fixed expenses) + $199,000 (target profit) = $230,000. Show more…
Show all steps
Your feedback will help us improve your experience
Luke Humphrey and 58 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Adriana Co., with annual net sales of \$5 million, maintains a markup of $25 \%$ based on cost. Adriana's expenses average $15 \%$ of net sales. What is Adriana's gross profit and net profit in dollars?
Prashant B.
Business. The operating costs for a local business are a fixed amount of $\$ 12,000$ plus $\$ 13.50$ per unit sold, while revenue is $\$ 27.25$ per unit sold. How many units does the business have to sell in order to break even?
Graphs
LINES
Give the cost, revenue, and profit functions. A couple running a house-cleaning business invests $\$ 5000$ in equipment, and they spend $\$ 15$ in supplies to clean a house, for which they charge $\$ 60$.
Using the Derivative
Applications to Marginality
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD