Nussbaum 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 $16,100 is closest to:

Question

Nussbaum 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 $16,100 is closest to:

Quizplus · Accepted Answer

11eacbfc_c77d_0dcb_8ffe_33aa1b069a11_TB7552_00 Unit sales to attain a target profit = (Target profit + Fixed expenses) ÷ Unit CM
= ($16,100 + $56,700) ÷ $7 per unit = $72,800 ÷ $7 per unit = 10,400 units

Nussbaum Corporation Has Provided the Following Contribution Format Income Statement