Based on the variable costs and contribution margin, the unit sales price is $80 and the unit contribution margin is $32.
The sales volume in units needed to earn $600,000 is 43,750 units and the amount in dollar sales needed is <u>$3,500,000.</u>
<h3>What is the unit sales price and unit contribution margin?</h3>
The unit sales price can be found as:
= Variable cost / (1 - contribution margin ratio)
= 48 / (1 - 40%)
= $80
Unit contribution margin is:
= Selling price x Contribution margin ratio
= 80 x 40%
= $32
<h3>What is the sales volume required to earn $600,000?</h3>
In units, this amount is:
= (Fixed cost + income required) / Contribution margin
= (800,000 + 600,000) / 32
= 43,750 units
In dollar terms the amount needed is:
= Units needed x selling price
= 43,750 x 80
= $3,500,000
Find out more on contribution margin at brainly.com/question/24039258.
