KSU Tabuk Corporation Contribution Margin & Pretax Target Profit Questions

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KSU Tabuk Corporation Contribution Margin & Pretax Target Profit Questions

Business Finance, king saud university

KSU Tabuk Corporation Contribution Margin & Pretax Target Profit Questions

Question Description

Tabuk Corporation produces and sells a product A. Its selling price is SAR18 per unit, and variable cost per unit is SAR15. Total fixed costs are SAR4, 000.

a. What is Tabuk Corporations contribution margin per unit?

b. How many units must Tabuk Corporation sell for a pretax target profit of SAR11, 000?

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