Help required volume of sales to achive X profit

topcat

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

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) "

ref http://forums.aat.org.uk/forum/for-s...target-costing