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What is the Sales revenue required to earn a profit of $ 54,000?

A product’s selling price is $18 per unit.  Each unit sold contribute $6 to the recovery of Fixed cost and profit.

 

Fixed cost of operation per year is : $84,000.

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2015/02/14
Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

84000+54000 =138000

CM =6 

BEP =138000/6 =23000 

BEP IN UNITS  EQUAL23000

SALES REVENUE =23000*18

answer equal =414000

Answer is $414000 to earn $54000

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

Rightly answered by Mr. Ahmed Abdullah

Malik Khalid Mahmood
by Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

agreed with mr. abdulla .................

Salah Othman Yousef Alshambaati
by Salah Othman Yousef Alshambaati , مدير ادارة الحسابات , شركة انفال الجديدة للتجارة والمقاولات

 414000 =   >>>>>>>>>>>>>>Sales revenue

Mohammad Iqbal Abubaker
by Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator

I agree with the answer given by  احمد عبدالله   Cost Accountant (CMA holder certification number 42139 ).

Lesley Lanag CMA CPA
by Lesley Lanag CMA CPA , Senior Accountant , Takaful Emarat Insurance (P.S.C)

414,000. Problem can be solved using algebraic formula:

Sales - Variable = contribution margin

18X -12X =138,000

X =23000

Sales =18X

sales =414,000

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

Sales revenue required =414000

AZHAR NAWAZ
by AZHAR NAWAZ , Assistant Manager Accounts , Quantum Geoservices (Pvt) Ltd

It will be23000 units @ $18= $414,000/-

 

Akhter Mehmood
by Akhter Mehmood , Station Coordinator at Radio Dhamaal fm94 Sialkot , Global Entertainment Pvt Ltd

Total Required is54000+84000 =138000

138000/6 =23000 units

23000 units at18 =414000

Ayman Esa Mustafa Farrag
by Ayman Esa Mustafa Farrag , مدير مالي , شركة الصفوف

Agree with mr Ahmed,,,,,,,,,,,

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