Speckman Enterprises, Incorporated, produces and sells a single product whose selling price is $200.00 per unit and whose variable expense is $68.00 per unit. The company's monthly fixed expense is $514,800. Assume the company's target profit is $11,000. The unit sales to attain that target profit is closest to:

Question

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To find the unit sales needed to achieve a target profit, we use the formula: (Fixed Costs + Target Profit) / (Selling Price per Unit - Variable Cost per Unit). Plugging in the given values: ($514,800 + $11,000) / ($200 - $68) = $525,800 / $132 ≈ 3,983 units.

Speckman Enterprises, Incorporated, Produces and Sells a Single Product Whose