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How many units must be sold to obtain profit before tax

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Reference no: EM132510547

Your business sells a type of product at $15 per unit. The contribution margin ratio is 40%. The annual fixed cost is $48,000.

Question (a) Determine the variable cost per unit.

Question (b) How many units must be sold to obtain profit before tax of $12,000?

Question (c) Establish the safety margin if the expected sales level is the same as (b). (You will have to calculate BEP first).

Reference no: EM132510547

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