Per unit  Total  Volume  Sales    $40.00 608000   Variable cost    28 425600   Contribiton margin    12 182400   Fixed expense      156000   Net operating    12 26400             Please share the work(sales and variable expense) from the last answer to achieve $51600 in targeted profit ?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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100%
         
    Per unit  Total  Volume 
Sales    $40.00 608000  
Variable cost    28 425600  
Contribiton margin    12 182400  
Fixed expense      156000  
Net operating    12 26400  
         

Please share the work(sales and variable expense) from the last answer to achieve $51600 in targeted profit ?

Expert Solution
Step 1

Sales revenue: It is the revenue earned by a business on selling the goods and services to the general public.

Variable costs: These costs are incurred in conjunction to the volume of goods produced or sold. It indicates that these costs are incurred only when the goods are produced or sold.

Fixed costs: These are costs which are incurred irrespective of the production or sale activities. It indicates that these costs are only incurred once and will not change with the change in the volume of goods produced or sold.

Contribution margin: It is the surplus achieved by a business after meeting all the variable costs from the sales revenue. It is nothing but the excess of sales revenue over the variable costs incurred for such sale.

Operating income: It is the income generated after deducting all the operating expenses incurred of the business from the revenue earned.

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