6. A company budgets to sells its three products A, B and C in the ratio 2:3:5 respectively, measured in units of sales. Unit sales prices and variable costs are as follows. Product Sales price Variable cost A $ per unit 20 11 B $ per unit 18 12 с $ per unit 24 18 Budgeted fixed costs are $1.2 million. What sales will be needed to achieve a target profit of $400,000 for the period?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 17E
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6. A company budgets to sells its three products A, B and C in the ratio 2:3:5 respectively, measured in
units of sales.
Unit sales prices and variable costs are as follows.
Product
Sales price
Variable cost
A
$ per unit
20
11
B
$ per unit
18
12
с
$ per unit
24
18
Budgeted fixed costs are $1.2 million. What sales will be needed to achieve a target profit of $400,000
for the period?
Transcribed Image Text:6. A company budgets to sells its three products A, B and C in the ratio 2:3:5 respectively, measured in units of sales. Unit sales prices and variable costs are as follows. Product Sales price Variable cost A $ per unit 20 11 B $ per unit 18 12 с $ per unit 24 18 Budgeted fixed costs are $1.2 million. What sales will be needed to achieve a target profit of $400,000 for the period?
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