Nussbaum 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 $16,100 is closest to:

Question

Nussbaum 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 $16,100 is closest to:

Quizplus · Accepted Answer

11ea7761_186d_bf48_81a5_bfd03fbc48ec_TB2580_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