Aquaspore Limited sells advanced technology wetsuits for a price of $2600 each. The company has a profit target this year of $122,000 and is considering increasing sales commissions in an effort to increase sales. The contribution margin ratio of the wetsuits is 25% and the company's fixed costs for this year are expected to be $320,000.

How many wetsuits must the company sell to reach its profit target?

If the company increases sales commissions by $100 per wetsuit, how many wetsuits must the company sell to reach its profit target?

Answer rating: 100% (QA)

To solve this problem we need to use the profit equation and the contribution margin ratio to find t... View the full answer