Torres Manufacturers produces flooring material.The monthly fixed costs are $10,000 per month.The unit selling price for the flooring is $95 and variable cost per unit is $35.If Torres' managers create a CVP graph from volume levels of zero to 500 units,at what sales level (in units)will the revenue and total cost lines intersect?

Question

Quizplus · Accepted Answer

A) Required sales in units = (Fixed costs + Target profit) / Contribution margin per unit
Unit contribution margin = Net sales revenue per unit - Variable costs per unit
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Torres Manufacturers Produces Flooring Material