Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

A company’s fixed costs in a quarter are $300000$. Its only product is sold at $25$ per unit, and its contribution to sales ratio is $40\%$. How many units of the product must it sell in order to earn a profit of $100000$?

  • A$10000$
  • B$16000$
  • C$30000$
  • D$40000$

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