Valdez Corporation has provided the following contribution format income statement. All questions concern situations that are 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. All questions concern situations that are 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

11ea7761_186d_7125_81a5_65034584e240_TB2580_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