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Paha777 [63]
3 years ago
9

Paula's Perfumes has a target profit of $4,000 per month. Perfume sells for $15.00 per bottle and variable costs are $13.50 per

bottle. Fixed costs are $3,200 per month. The number of bottles that must be sold each month to earn the target profit is:______.
Business
1 answer:
aivan3 [116]3 years ago
6 0

Answer:

4,800 bottles

Explanation:

The formula to compute the number of bottles sold is shown below:

= (Fixed cost + target profit) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $15 - $13.50

= $1.50

So, the number of bottles sold equal to

= ($3,200 + $4,000) ÷ ($1.50)

= 4,800 bottles

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