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CompuTop Company sells toy laptop computers for $30 each. If the variable cost for each laptop is $20 and fixed costs total $25,000, how many laptops must CompuTop sell to generate a target income of $66,667?
Expert Answer
Solution
unit sale to get desired profit=(fixed cost+desired profit)/contribution margin per unit
=($25,000+$66,667)/($30-$20)
=9,166. 7 units or 9167 units
=
