Answered: sales price of $250 is required to earn…

sales price of $250 is required to earn a target profit of $45,000 if fixed costs are $1200, variable costs are $96, and sales in units are 300. True or False?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A sales price of $250 is required to earn a target profit of $45,000 if fixed costs are $1200, variable costs are $96, and sales in units are 300. True or False?

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Assume a sales volume of 9120 units, unit selling price of $18, unit variable cost of $10, and total fixed costs of $30400. What is the margin of safety in sales dollars? O $68400 O $164160 O $34200 O $95760
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