ICAEW BIP · Chapter 11 · Question 4 of 10
A company's fixed costs are £288,000 and its contribution per unit is £24. It wants to make a profit of £96,000. How many units must it sell?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) 16,000 units
Explanation
Required units = (fixed costs + target profit) / contribution per unit = (£288,000 + £96,000) / £24 = £384,000 / £24 = 16,000 units.
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