Question -
Q1. A business requires to sell 22000 units in order to earn a target profit of $150,000.the contribution per unit is $15. What is the businesses break-even point?
a) 12,000 units
b) 15,000units.
c) 14,000 units
d) 10,000units.
Q2. In year1, Mojo Enterprises Ltd produced 25,000 units of a product, incurring fixed costs of $350,000.total costs of $525,000 report a loss of $75,000 for year1. For year 2, output is planned to increase by 20%.By how much will the selling price per unit increase for the business to generate a profit of $70,000?
a) $3
b) $4
c) $5
d) $6