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A product’s selling price is $18 per unit. Each unit sold contribute $6 to the recovery of Fixed cost and profit.
Fixed cost of operation per year is : $84,000.
84000+54000 =138000
CM =6
BEP =138000/6 =23000
BEP IN UNITS EQUAL23000
SALES REVENUE =23000*18
answer equal =414000
Answer is $414000 to earn $54000
Rightly answered by Mr. Ahmed Abdullah
agreed with mr. abdulla .................
414000 = >>>>>>>>>>>>>>Sales revenue
I agree with the answer given by احمد عبدالله Cost Accountant (CMA holder certification number 42139 ).
414,000. Problem can be solved using algebraic formula:
Sales - Variable = contribution margin
18X -12X =138,000
X =23000
Sales =18X
sales =414,000
It will be23000 units @ $18= $414,000/-
Total Required is54000+84000 =138000
138000/6 =23000 units
23000 units at18 =414000
Agree with mr Ahmed,,,,,,,,,,,