Complete the attached worksheet. You will need to show your work for each questi

Question

Complete the attached worksheet. You will need to show your work for each question

3. If you can sell a product for $67 and it costs you $28 per unit to produce, while also paying $3,900 per month in fixed expenses, how many units must you sell each month in order to earn a monthly profit of $2,500? Show all your work.

4. If you can sell a product for $38 and it costs you $14 per unit to produce, while also paying $6,900 per month in fixed expenses, how many units must you sell each month in order to earn a monthly profit of $2,500? Show all your work.

Explanation / Answer

Requirement 3 Particulars Calculation $ Required monthly profit Given         2,500 Add: Fixed Cost Given         3,900 Required contribution (2500+3900)         6,400 Contribution per unit * ($67-$28) 39 Number of units to be sell 6,400/39 164 Units * Selling price - Variable Cost Requirement 4 Particulars Calculation $ Required monthly profit Given         2,500 Add: Fixed Cost Given         6,900 Required contribution (2500+6900)         9,400 Contribution per unit * ($38-$14) 24 Number of units to be sell 9,400/24 392 Units * Selling price - Variable Cost

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