Tilba Auto Parts has reported sales of $440 000, a contribution margin of $6 per unit, fixed costs of $90 000 and a profit of $42 000. How many units did they sell?

Question

Quizplus · Accepted Answer

To find the number of units sold, use the formula: Profit = (Contribution Margin per Unit * Units Sold) - Fixed Costs. Plugging in the values: $42,000 = ($6 * Units Sold) - $90,000. Solving for Units Sold gives 22,000 units.

Tilba Auto Parts Has Reported Sales of $440 000, a Contribution