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Sagot :
Answer:
35 Car Washes
Step-by-step explanation:
Data:-
Sale Charges per wash = $6/-
Cost per wash = $2/-
Base cost = $80/-
Required Profit = $60/-
Required:-
No of Cash Washes to reach the required profit = ?
Solution:-
Sales - VC = Contribution Margin
$6 - $2 = $4 per unit
Required Sales in Unit = Fixed Cost + Target Profit / Contribution margin per unit
= $80 + $60 / $4
= 35 Units
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