Assume the following information: $\begin{array}{llr}
\text { Selling price per unit} &\$150\
\text { Contribution margin ratio } &40\%\
\text { Total fixed costs } &\$225,000
\end{array}$
How many units must be sold to generate a before-tax profit of $45,000?

Question

Assume the following information: $\begin{array}{llr}
  \text {  Selling price per unit} &\$150\
 \text { Contribution margin ratio } &40\%\
 \text { Total fixed costs } &\$225,000
\end{array}$
 How many units must be sold to generate a before-tax profit of $45,000?

Quizplus · Accepted Answer

Unfortunately, the given information cannot be used to calculate the number of units that must be sold to generate a before-tax profit of $45,000. There may be missing data, such as the cost of producing each unit or the price at which each unit is sold. Without this information, it is impossible to calculate the number of units required to generate a specific profit.

Assume the Following Information How Many Units Must Be Sold to Generate a Before-Tax