If fixed costs are $20,000, contribution margin per unit is $3 and target pre-tax profit is $40,000 then sales is required to be 20,000 units.

Name: If fixed costs are $20,000, contribution margin per unit is $3 and target pre-tax profit is $40,000 then sales is required to be 20,000 units.
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Quizplus · Accepted Answer

The contribution margin per unit is $3, and the target pre-tax profit is $40,000. Therefore, the number of units that need to be sold to achieve the target profit is $40,000/$3 = 20,000 units.

If Fixed Costs Are $20,000, Contribution Margin Per Unit Is