Answered: Sodhi sells a product for $40 per unit…

Sodhi sells a product for $40 per unit and has a contribution margin ratio of 50%. Fixed expenses total $150,000 annually. How many units must be sold to yield a profit of $50,000?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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Question

How many units must be sold yield a profit of 50000?

Sodhi sells a product for $40 per unit and
has a contribution margin ratio of 50%.
Fixed expenses total $150,000 annually.
How many units must be sold to yield a
profit of $50,000?

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