Crow, Inc., a not-for-profit company, has a product contribution margin of $40. The fixed costs are $800,000.
Question:
Crow, Inc., a not-for-profit company, has a product contribution margin of $40. The fixed costs are $800,000. Crow, Inc., has set a target profit of $35,000 per year.
A. What is the breakeven point in units?
B. How many units must be sold to achieve the target profit?
C. If fixed costs decrease 10 percent, how many units must be sold to achieve the target profit?
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ANSWER A To calculate the breakeven point in units we can use the formula Breakeven Point Fixed Cost...View the full answer
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