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CFA Level 1
Corporate Finance

Breakeven Sales Volume Calculation

Medium Measures Of Leverage Breakeven Analysis

ABC Corporation is analyzing its financial performance to understand how changes in sales volume affect profit. The company has estimated its fixed costs to be $200,000 and its contribution margin per unit to be $50. To achieve a target profit of $100,000, what is the sales volume (in units) that ABC Corporation needs to sell?

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