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Company A wants to earn R5, 000 profit in the month of January. If their fixed costs are R10,000 and their product has a per- unit contribution margin of R250, how many units must they sell to reach their target income? a. 60 O b. 40 O c. 120 d . 20

Company A wants to earn R5, 000 profit in the month of January. If their fixed costs are R10,000 and their product has a per- unit contribution margin of R250, how many units must they sell to reach their target income? a. 60 O b. 40 O c. 120 d . 20

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Company A wants to earn R5,000 profit in the month of January. If their fixed costs are R10,000 and their product has a per- unit contribution margin of R250, how many units must they sell to reach their target income? a. 60 O b. 40 O c. 120 d . 20
Transcribed Image Text:Company A wants to earn R5,000 profit in the month of January. If their fixed costs are R10,000 and their product has a per- unit contribution margin of R250, how many units must they sell to reach their target income? a. 60 O b. 40 O c. 120 d . 20
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