Windmill Pty Ltd makes miniature windmills for gardens.If the selling price per windmill is $100,the contribution margin ratio is 40%,and total fixed costs are $25 000,how many windmills must they sell to achieve a desired profit of $20 000?

Question

Quizplus · Accepted Answer

Contribution per windmill = $100 x 40% = $40Number of windmills to achieve a desired profit of $20,000 = $20,000/$40 = 500

Windmill Pty Ltd Makes Miniature Windmills for Gardens