Practice Assessment 2 - Task 8 b.

gabriellenlewis

I
It's just the part that asks for the required sales volume in units that I need a prompt with?

dumutroba

We need to see the fixed costs in (a)

gabriellenlewis

> @dumutroba said:
> We need to see the fixed costs in (a)

Ok, I can’t access them right now but what do we do with them once we have figure? Thanks.

dumutroba

For the break even formula we need fixed costs to be divided to contribution(selling price less variable costs)
From a you can possible fill most of the gaps and come to the answer

gabriellenlewis

> @dumutroba said:
> For the break even formula we need fixed costs to be divided to contribution(selling price less variable costs)
> From a you can possible fill most of the gaps and come to the answer

Why do we need break even though if there’s a desired profit margin of 25%?

dumutroba

Profit margin is your gross profit, this is the formula sales less cost of sales (variable and fixed production costs) in this case 25%margin 75% cost of sales 100% sales
I can't still come to an answer as I can't see all figures
I will try when I get back home

dnatalia

Hi there. for this task would you be able to provide reply (b) require sales volume in units. t
The given answer is 25,217 but i cannot get to that number. thanks


DONT WORRY, FOUND THE ANSWER IN ANOTHER POST. THANKS