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?
The correct answer is B.
I don't know the working. can you please work it for me. Thanks
For 1200units the sales for the week will be
The break-even sales revenue 18000
The sales ratio is 40%
60000.4=$2400 of profit
The Point where Cost equals Sales Is $18000 So,
The Contribution to sales ratio means 40% is the amount of profit in the figure So