CIMA BA2 · Chapter 10 · Question 5 of 12
With fixed costs of $270,000 and contribution of $9 per unit, how many units must be sold to earn a profit of $90,000?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) 40,000 units
Explanation
Required contribution = fixed costs + target profit = $270,000 + $90,000 = $360,000. Units = $360,000 / $9 = 40,000 units.
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