The ACCA Learning Community
Home
251 online now in this group

Can you please solve this question?

+1 Vote
Can you please solve this question?

A company manufactures a single product which it sells for $20 per unit. The product has a contribution to sales ratio of 40%. The company’s weekly break- even point is sales revenue of $18,000.
What would be the profit in a week when 1,200 units are sold?
A
$1,200
B
$2,400
C
$3,600
D
$6,000

The correct answer is B.

I don't know the working. can you please work it for me. Thanks

April 10th 2015 AN ACCA USER 2,300 Points

3 Replies

+1 Vote

For 1200units the sales for the week will be
120020=$24000
The break-even sales revenue 18000
24000-18000=$6000
The sales ratio is 40%
6000
0.4=$2400 of profit

April 10th 2015 AN ACCA USER 560 Points 1 Flag
+1 Vote

The Point where Cost equals Sales Is $18000 So,
24000-18000=6000
The Contribution to sales ratio means 40% is the amount of profit in the figure So
6000x40%=$2400

May 3rd 2015 AN ACCA USER 3,210 Points
0 Votes
eish can not figure it out
April 10th 2015 AN ACCA USER 650 Points
...