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    sandeep's Avatar
    sandeep Posts: 2, Reputation: 1
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    #1

    Sep 12, 2004, 09:10 AM
    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.
    sandeep's Avatar
    sandeep Posts: 2, Reputation: 1
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    #2

    Sep 12, 2004, 01:07 PM
    : Managerial Accounting Problem
    Problem Solved
    cocoat's Avatar
    cocoat Posts: 1, Reputation: 1
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    #3

    Jul 5, 2010, 02:21 PM
    2724
    ZzRosezZ's Avatar
    ZzRosezZ Posts: 1, Reputation: 1
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    #4

    Jul 8, 2012, 06:29 AM
    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's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #5

    Jul 8, 2012, 03:09 PM
    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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