[sandeep]

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.

[sandeep]

Problem Solved

[cocoat]

2724

[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.

[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