Heather Hudson makes stuffed Teddy Bears. Recent information for her business as

Question

Heather Hudson makes stuffed Teddy Bears. Recent information for her business as follows

C La C Re Exam II X ) e | ezto.mheducation.com/hm.tpx (90 D I >> Most Visited my.utrgv.edu ALGEBRA LoginSearch everything on connect ACCOUNTINC Exan lI Instructions i help °Question 11 (of 25) E I Save & Exit Submit Time remaining: 0:30-21 Heather Hudson makes stuffed teddy bears. Recent information for her business follows Selling price per bear Total fixed cost per month Variable cost per bear 5 32.05 3,656.00 15.05 If Heather wants to earn $1240.00 in profit next month, how many bears will she have to sell? Target Unit Sales

Explanation / Answer

Answer:-Contribution margin per bear =Selling price per bear – Variable cost per bear

=$32.05 per bear - $15.05 per bear

=$17 per bear

Target unit sales = (Fixed costs+ Target profit)/ Contribution margin per bear

=($3656+$1240)/$17 per bear

=$4896/$17 per bear

=288 bear

If Heather wants to earn $1240 in profit next month, she will have to sell 288 bear.

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