Question

The sunshine ski shop makes a profit of $40 on each pair of skis sold. Shop expenses for one week are 2,480. What is the minimum number of pairs of skis that must be sold in one week to make profit of at least $2,000

Answer 1

32000

Explanation:

Answer 2

Number of units to sell= 112 units

Explanation:

Giving the following information:

Unitary contribution margin= $40

Fixed costs= $2,480

Desired profit= $2,000

To calculate the number of units to be sold, we need to use the following formula:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (2,480 + 2,000) / 40

Break-even point in units= 112 units