Asked by
Ki?uu Duyênn
on Dec 05, 2024Verified
Epex Pty Ltd makes a single product. Annual fixed expenses are $48 000 and the contribution margin ratio is 30 per cent. What volume in sales dollars is necessary for Epex to achieve a target profit of $15 000?
A) $63 000
B) $90 000
C) $160 000
D) $210 000
Fixed Expenses
Costs that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance premiums.
Target Profit
The amount of net income a business aims to achieve within a specific period.
- Assess the break-even points in unit numbers and sales financials.
- Appraise the effects of variations in fixed and variable expenditures on the assessment of break-even points and targeted earnings.
Verified Answer
JM
Learning Objectives
- Assess the break-even points in unit numbers and sales financials.
- Appraise the effects of variations in fixed and variable expenditures on the assessment of break-even points and targeted earnings.