Help required volume of sales to achive X profit

Question D

My attempt was working out the profit per unit which would be £70-£49 = £21

£800, 000 / £21 = 38,096 units

although the answer is 35,152 units which would work out at at profit of £22.76 per unit ? What have i overlooked please?



  • topcat
    topcat Registered Posts: 452
    Found from one of Sandys (thanks) old threads through google as the search here is useless. Do we need to know this formula for 2013 syllabus?


    This is a development of break even analysis.

    You should know that:

    required profit + total fixed costs = sales volume required for required profit
    .......contribution per unit

    So use the figures you have produced

    £800,000 + £360,000 = 35151.5 which rounds to 35152
    ...........(£70-£37) "

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