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

Costs and cost behaviour — practice question

For one month, a business has fixed costs of $\$150\,000$. Its only product is sold at $\$20$ per unit, and the contribution to sales ratio is $75\%$. It wants to earn a profit of $\$300\,000$ in that month. How many units must the business sell?

  • A$10\,000$
  • B$20\,000$
  • C$22\,500$
  • D$30\,000$

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