Khayyam Company,which sells tents,has provided the following information:

What are the required sales in units for Khayyam to break even? (Round your answer up to the nearest whole unit. )

Question

Khayyam Company,which sells tents,has provided the following information:

What are the required sales in units for Khayyam to break even? (Round your answer up to the nearest whole unit. )

Quizplus · Accepted Answer

D)
Required sales in units = (Fixed costs + Target profit)/ Contribution margin per unit
Unit contribution margin = Net sales revenue per unit - Variable costs per unit
 11ea86ed_2ba2_5028_8b27_65f4e64b7d15_TB3056_00 Required sales in units = ($12,700 + $0)/ $34 = 374 units

Khayyam Company,which Sells Tents,has Provided the Following Information