00:01
Hello students, we are given a question here.
00:02
A product sells for $200 per unit and the variable cost per unit are $130.
00:09
Okay? the fixed cost are given as $4 ,000 .20 ,000.
00:13
If the firm wants to earn $35 ,000 pre -tax income, then how many units must be sold? so we can just say that here, the contribution margin, contribution margin per unit per unit will be equal to sales price minus sales price students minus variable cost per unit variable cost per unit okay students so sales price is given as here $200 per unit minus variable cost is given as $130 per unit so we will get it as contribution margin per unit is nothing but equal to $70 okay now number of units need to be sold for profit.
01:07
We can write here number of units need to be sold.
01:15
Need to be sold for profit is equal to, sorry, profit as $35 ,000 can be written as equals to.
01:28
Obviously, desired profit plus fixed cost, desired profit.
01:34
Students plus the fixed cost and divided by the contribution margin per unit contribution students contribution margin per unit students now we can put our values here so basically desired profit is nothing but equal to thirty five thousand dollar plus fixed cost is given us here 400 collect 20 ,000 dollar divided by here contribution margin per unit is $70.
02:13
Okay...