Target Profit

1. The firm’s management can calculate the total of production to achieve the target profit with the following formula:


Based on the following data, calculate the amount of expenditure required to achieve a profit of RM8,000.

Fixed cost = RM12,000.00

Cost changed per unit = RM6.00

Sales price per unit = RM10.00

Contribution margin per unit = RM4.00 (RM10.00-RM6.00)