in Corporation has a single product whose selling price is $134 per unit and who

Question

in Corporation has a single product whose selling price is $134 per unit and whose variable expense is $67 per unit. The monthly fixed expense is $32.300 1 Calculate the unit sales needed to attain a target proft of $7,900 (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $8,600. (Round your intermediate calculations to the nearest whole 1. Units sales to attain target prof Dollar sales to atain target prof MacBo 5 6 a E S D F command command opti

Explanation / Answer

Contribution margin=Sale-Variable costs

=(134-67)=$67 per unit.

1.Target Contribution margin=Fixed costs+Target profits

=(32300+7900)=$40200

Hence unit sales target=40200/67=600

2.Target Contribution margin=Fixed costs+Target profits

=(32300+8600)=$40900

Hence unit sales target=40900/67=610.4477

=(610.4477*134)=$81800.

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