Accounting..... Siverquick sells a single product. They want to achieve atarget income of $60,000 next year. How many units ofthe product do they have to sell to achieve the target?Price$20.00Contribution margin ratio 40%Annual fixed expenses$240,000A. 37,500 unitsB. 30,000 unitsC. 25,000 unitsD. 7,500 unitsE. None of the above.

Step 1: Define CVP AnalysisCost volume profit analysis is an important concept in cost accounting…

Answered: Siverquick sells a single product. They…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Their current full cost for the product is $44 per unit.In order to meet the new target cost, how much will the company have to cut costs per unit, if any? a.$1 b.$2 c.$3 d.$0
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ABC Ltd produces a single product. The selling price is OMR 50 a unit and the variable costs is OMR 30 a unit. The annual fixed costs of the business are OMR 5000. The business aims to make OMR 10000 profit during the forthcoming year. How many units must be sold to achieve this target profit? Select one: O a. None of the options O b. 550 Units O c. 500 Units O d. 750 Units
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