The following forecasts relate to a single product business for a period: Variable costs $38640, Fixed costs $39975, Sales revenue $84000, Sales units $6000………What sales revenue is required to achieve a profit of $12000 in the period?…i could not do it.Plz do the math.
If profit is to be 12,000 then total,contribution must be 12,000 + 39975= 51,975
Contribution per unit is (84000 – 38640)/6000 = 7.56
Units needed to generate 51975 = 51975/7.56 = 6875
Revenue is therefore 14 (the sp per unit) x 6875 = 96250.
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