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The Bright Spot Company’s sales were $300,000 (30,000 units sold). Variable expenses were 60% and fixed...

The Bright Spot Company’s sales were $300,000 (30,000 units sold). Variable expenses were 60% and fixed expenses were $60,000. How many units need to be sold to earn a desired profit of $20,000

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Answer #1
Desired Profit $              20,000
Add:Fixed expenses $              60,000
Desired Contribution Margin $              80,000
Contribution Margin Ratio 40%
Desired Sales($80,000/40%) $           2,00,000
Desired Sales in units($200,000 / $10) 20000 units
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