The Contribution Margin Approach
{"Image DocumentName": "The Contribution Margin Approach", "Image ImageDescription": "The contribution margin method can be used to determine that 900 bikes must be sold to earn the target profit of  100,000. Fixed expenses + Target profit. Unit contribution margin. = Unit sales to attain. the target profit. A quicker way to solve this problem is to add the desired profits to the fixed cost and divide the total by the contribution margin per unit. Notice we get the same result of 900 bikes.  40,000 +  50,000.  4/chocolate. = chocolates.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}