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Madame Gazelle Ltd sells widgets to the manufacturing industry at a price of 58 per widget. Her cost structure is as follows:
Material cost per unit = 20
Direct labour cost per unit = 14
Other variable overhead cost per unit = 4
Annual fixed manufacturing overhead = 16,000
Annual fixed selling and administrative overhead = 8,000
What is the sales revenue required to achieve a target profit of 12,000?
| | a. | 54,400 |
| | b. | 104,000 |
| | c. | 80,000 |
| | d. | 104,400 |
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