Data concerning Strite Corporation's single product appear below:

-Assume the company's target profit is $17,000.The unit sales to attain that target profit is closest to:

Question

Data concerning Strite Corporation's single product appear below:
 
-Assume the company's target profit is $17,000.The unit sales to attain that target profit is closest to:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $150.00 per unit - $42.00 per unit = $108.00 per unit
Unit sales to attain a target profit = (Target profit + Fixed expenses) ÷ Unit CM
= ($17,000 + $421,200) ÷ $108.00 per unit
=$438,200 ÷ $108.00 per unit = 4,057 units

Data Concerning Strite Corporation's Single Product Appear Below