They could end up financing them too much and need to borrow more money from China (we are very much in debt right now) nd then we would have more to pay
Answer:
The answer is d. 3911
Explanation:
First, we obtain the contribution margin, wih the formula Selling price per unit minus variable expense per unit. So, the contribution margin per unit is
.
Next, knowing how much each unit contributes to cover the fixed costs, we can calculate how many units do we need to pay the fixed expenses. This is called "break even point" or BEP. The formula is Fixed Expenses / Contribution margin per unit. So, the BEP is
.
With those two things, the final task is to calculate how many units we need, covered the fixed expenses, to achieve the company target profit. The formula is Target profit / Contribution margin per unit. So, the number of units is
.
Finally, we add these two number, to obtain the total units needed to cover the fixed costs and achieve the target profit: 
Based on the options given, the most likely answer to this query are
You want to charge a price that covers variable costs.
You want to charge a price that does not cover fixed costs.
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Answer and Explanation:
The preparation of a comparitive income statement, with vertical analysis, stating each item for both years as a percent of sales is prepared below with the help of the attached spreadsheet:-
The formula that we have used is shown below:-
Gross profit percent = Gross profit / Sales revenue
Cost of goods sold percent = Cost of goods sold / Sales revenue
and in a similar way operating expenses items.