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-   -   Managerial Accounting Problem (https://www.askmehelpdesk.com/showthread.php?t=38)

  • Sep 12, 2004, 09:10 AM
    sandeep
    Managerial Accounting Problem
    Total fixed costs for product A are 23,400 per month, the variable cost per unit is determined to be $32, the selling price is $45.A firm must sell_________units to generate $12000 per months in profits.
  • Sep 12, 2004, 01:07 PM
    sandeep
    : Managerial Accounting Problem
    Problem Solved
  • Jul 5, 2010, 02:21 PM
    cocoat
    2724
  • Jul 8, 2012, 06:29 AM
    ZzRosezZ
    CM per unit = sales price per unit - variable cost per unit = 45 - 32 = $13

    Sales unit = ( target profit + fixed cost ) / CM per unit = ( 12000 + 23400 ) / 13 = 2723 unit.
  • Jul 8, 2012, 03:09 PM
    paraclete
    now let me; see selling price - variable cost = contribution per unit
    units required = fixed costs plus desired margin / unit contribution
    it helps if you think about what you are trying to achieve

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