If a firm has $482 500 in fixed costs, a unit contribution margin of $45 and targeted sales volume of 12 500 units, the target net profit would be

Name: If a firm has $482 500 in fixed costs, a unit contribution margin of $45 and targeted sales volume of 12 500 units, the target net profit would be
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The target net profit can be calculated using the formula: Target Net Profit = (Unit Contribution Margin * Targeted Sales Volume) - Fixed Costs. Here, it would be (45 * 12,500) - 482,500 = 80,000.

If a Firm Has $482 500 in Fixed Costs, a Unit