Melton, Inc. sells a product with a contribution margin of $ 40. Fixed costs are $ 5,000

Question:

Melton, Inc. sells a product with a of $ 40. Fixed costs are $ 5,000 per month. How many units must Melton sell to earn an operating income of $ 10,000?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...