Valdez 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 $24,000 is closest to:

Question

Valdez 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 $24,000 is closest to:

Quizplus · Accepted Answer

11eacbfc_c77c_9896_8ffe_3999e20deb0b_TB7552_00 Unit sales to attain a target profit = (Target profit + Fixed expenses) ÷ Unit CM
= ($24,000 + $54,000) ÷ $10 per unit = $78,000 ÷ $10 per unit = 7,800 units

Valdez Corporation Has Provided the Following Contribution Format Income Statement