Answer:
The answer is $360,000
Explanation:
Target profit is the expected amount of profit that the management of a business are expecting to achieve.
Contribution margin per unit is the difference between sales per unit and variable cost per unit.
Fixed cost is the same all through the production.
Contribution margin per unit= $100-$60 = $40
Required sales=
(Fixed cost + target profit) ÷ contribution margin per unit.
($48,000 + $96,000) ÷ $40
=3,600units
The selling price per unit is $100
Therefore, the total revenue is 3,600 x $100
$360,000
