Data concerning Bedwell Enterprises Corporation's single product appear below:
The unit sales to attain the company's monthly target profit of $17,000 is closest to:

Question

Data concerning Bedwell Enterprises Corporation's single product appear below:
 The unit sales to attain the company's monthly target profit of $17,000 is closest to:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $160.00 per unit - $65.60 per unit
= $94.40 per unit
Unit sales to attain a target profit = (Target profit + Fixed expenses) ÷ Unit CM
= ($17,000 + $387,040) ÷ $94.40 per unit
= $404,040 ÷ $94.40 per unit
= 4,280 units

Data Concerning Bedwell Enterprises Corporation's Single Product Appear Below