Blissful Blankets' target profit is $520,000. Each blanket has a contribution margin of $21. Fixed costs are $320,000. The numbe

Question

blondinia [14]

2 years ago

13

Blissful Blankets' target profit is $520,000. Each blanket has a contribution margin of $21. Fixed costs are $320,000. The numbe

r of blankets that must be sold to achieve the target profit

Business

1 answer:

zysi [14] · Answer 1 · 2023-06-30T16:26:10+03:00

It can be deduced that the number of blankets that must be sold in order for the company to achieve the target profit is 40000.

<h3>How to calculate the target profit</h3>

From the information, Blissful Blankets' target profit is $520,000 and each blanket has a contribution margin of $21. Fixed costs are $320,000.

Therefore, the number of blankets that must be sold to achieve the target profit will be:

= (520000+320000)/21

= 40000

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