Question

Blissful Blankets' target profit is $520,000. Each blanket has a contribution margin of $21. Fixed costs are $320,000. The number of blankets Blissful Blankets need to sell in order to achieve its target profit is

Answer 1

Answer:

40,000 blankets

Explanation:

Number of blankets that needed to be sold to achieve a desired profit = Fixed costs + Targeted profit / Contribution margin

= ($320,000 + $520,000) / $21

= 40,000 blankets