Cassius Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. The number of units that must be sold to achieve a target profit of $31,500 is closest to:

Question

Cassius Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.  The number of units that must be sold to achieve a target profit of $31,500 is closest to:

Quizplus · Accepted Answer

11eacbfc_c76d_a51f_8ffe_3d7fcdc766c4_TB7552_00 Unit sales to attain a target profit = (Target profit + Fixed expenses) ÷ Unit CM
= ($31,500 + $67,200) ÷ $10.50 per unit = $98,700 ÷ $10.50 per unit = 9,400 units

Cassius Corporation Has Provided the Following Contribution Format Income Statement