Hettrick International Corporation's only product sells for $120.00 per unit and its variable expense is $52.80. The company's monthly fixed expense is $396,480 per month. The unit sales to attain the company's monthly target profit of $13,000 is closest to: (Round your intermediate calculations to 2 decimal places.)

Question

Quizplus · Accepted Answer

The equation to find the unit sales needed to attain the company's monthly target profit is:

Unit sales = (fixed expenses + target profit) / (sales price per unit - variable expense per unit)

Unit sales = (396,480 + 13,000) / (120 - 52.8) = 6,093.36

Rounding to the nearest whole number, we get the answer of 6,093. Therefore, the closest answer is B, 6,093.

Hettrick International Corporation's Only Product Sells for $120