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Help SearchShare More» Log In (2) Socrates United States -H... Thanks for choosing Bank.. Pages- Project Tools (2) a Jack Bellomo urses . ACC SOS SP2018 V Week Four-EXAM 1 / Earn 1 QUIZ NAVIGA TION on 31 and sells a single procduct whose seling price s $200 00 per unt and whose vartable expense is 568.00 per unt The company's monmthy twed expense s s $68.00 per unit The company's monthly fxed expense is $514,800. red out of 3 Assume the company's target profit is $11.000. The unt sales to attain that target profit is closest to Select one: 0 a 2,629 units O b 4,781 units ? ? 7,732 units O d 3,983 units Finish attempt on 32 Job 007 was recenty completed The following data have been recorded on its job cost sheet red out of 3 9 S 3.193 Direct materials Direct labor-hours Direct labor wage rate 21 läbor-hours s 12 per labor-hour 166 machine hours

Explanation / Answer

Unit contribution margin = Sales per unit – Variable cost = $ 200 - $ 68 = $ 132

Sales units required to earn target profit = (Fixed cost + target income)/ unit contribution margin

                                                                        = ($ 514,800 + $ 11,000)/$ 132

                                                                        = $ 525,800/ $ 132 = 3,983.333333 or 3,983 units

Hence option “d. 3,983” is correct answer.

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