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Exam CCP Topic 4 Question 7 Discussion

Actual exam question for AACE International's CCP exam
Question #: 7
Topic #: 4
As the leas cost engineer for the XYZ Services Company, you have been requested to provide pertinent for an equipment rental decision. The unit price of the food stuffs varies, but an average unit selling process has been determined to be $0.50 cents and the average unit acquisition cost is $0.40 cents.
The following revenue and expense relationships are predicted:

It S480 is the target net profit, then the total sales volume (in dollars) is:

Suggested Answer: B Vote an answer

To calculate the total sales volume needed to achieve a target net profit of $480, we first find the total required contribution margin:
Required Contribution Margin=Fixed Costs+Target Net Profit=6,000+480=6,480\text{Required Contribution Margin} = \text{Fixed Costs} + \text{Target Net Profit} = 6,000 + 480 = 6,480Required Contribution Margin=Fixed Costs+Target Net Profit=6,000+480=6,480 Using the contribution margin per unit of $0.10, we calculate the required sales volume:
Required Sales Units=6,4800.10=64,800 units\text{Required Sales Units} = \frac{6,480}{0.10} = 64,800 \text{ units}Required Sales Units=0.106,480​=64,800 units Then, multiply by the unit sale price:
Total Sales Volume=64,800×0.50=$32,400\text{Total Sales Volume} = 64,800 \times 0.50 = \$32,400Total Sales Volume=64,800×0.50=$32,400 Therefore, $32,400 is the required sales volume to achieve a target net profit of $480.

by Nelson at Dec 14, 2024, 04:43 AM

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Here are all the actual test exam dumps for IT exams. Most people prepare for the actual exams with our test dumps to pass their exams. So it's critical to choose and actual test pdf to succeed.

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