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| 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 ?
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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