Metro Manufacturers produces flooring material.The monthly fixed costs are $16,000 per month.The sales price per unit is $95 and variable cost per unit is $35.If Metro's managers create a CVP graph from volume levels of zero to 800 units,at what sales level (in units)will the revenue and total cost lines intersect? (Round your answer up to the nearest whole unit.)

Question

Quizplus · Accepted Answer

Required sales in units = (Fixed costs + Target profit) / Contribution margin per unit
Unit contribution margin = Net sales revenue per unit - Variable costs per unit
 11ea8873_d524_1716_bb89_69890452e296_TB5026_00

Metro Manufacturers Produces Flooring Material