Description
Crow, Inc., a not-for-profit company, has a product contribution margin of $40. The fixed costs are $800,000. Crow, Inc., has set a target profit of $35,000 per year.
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Explanation & Answer
Fixed Cost = $800,000
Profit = $35,000
Contribution Margin = $40
Volume to achieve a profit of $35,000 or revenue of $ 835,000 is = 835000/40 = 20875 Units
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