A producer has fixed costs of $\$300\,000$. It produces and sells one product at $\$80$ for each unit. The contribution to sales ratio is $60\%$. How many units must it sell to earn a profit of $\$600\,000$?
- A$6250$
- B$6750$
- C$12\,500$
- D$18\,750$
Accounting 9706 · AS & A Level · Costs and cost behaviour
A producer has fixed costs of $\$300\,000$. It produces and sells one product at $\$80$ for each unit. The contribution to sales ratio is $60\%$. How many units must it sell to earn a profit of $\$600\,000$?