Compute for the number of sales units needed by partnership

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Reference no: EM132730335

Question - Yuan & Juan Partnership wants to determine the level of sales neeeded in order to produce their target profit for the month of November 2020.

The following are the details given by the partnership:

1. Total fixed cost is Php 130,000.

2. The CM ratio is 40%.

3. The CM per unit is Php 200 per unit

4. The target operating income of the partnership is Php 70,000.

Required -

1. Compute for the number of sales units needed by the Partnership to obtain the operating income.

2. How much should the Partnership set its selling price to obtain the operating income.

Reference no: EM132730335

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