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  • This topic has 2 replies, 2 voices, and was last updated 9 years ago by bilalkhan47.
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  • December 3, 2016 at 2:47 pm #353432
    bilalkhan47
    Member
    • Topics: 4
    • Replies: 7
    • ☆

    Hello Sir
    Impact of response 1
    Could you please explain how they arive at 105973 units to cover the loss in part 2. . Thanks

    December 3, 2016 at 3:06 pm #353438
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10653
    • ☆☆☆☆☆

    Loss of operating profit is $5,500,000
    Contribution per unit is $51.9

    Number of units needed to cover the loss = 5,500,000/51.9 = 105,973

    December 3, 2016 at 3:08 pm #353439
    bilalkhan47
    Member
    • Topics: 4
    • Replies: 7
    • ☆

    Thank you sir

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