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

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7MC: Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and...
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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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