Sara .co. want to earn a total contribution margin of Birr 10,000 on sales of 1,000 units. Their sales price is Birrl15 per unit, and their fixed costs are Birr 5,000. What variable cost per unit is necessary to achieve their goal?

Sara .co. want to earn a total contribution margin of Birr 10,000 on sales of 1,000 units. Their sales price is Birrl15 per unit, and their fixed costs are Birr 5,000. What variable cost per unit is necessary to achieve their goal?

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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Question

2.3 Sara .co. want to earn a total contribution margin of Birr 10,000 on sales of 1,000
units. Their sales price is Birrl15 per unit, and their fixed costs are Birr 5,000. What
variable cost per unit is necessary to achieve their goal?

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