Maziarz Corporation produces and sells a single product. Data concerning that product appear below:

-Assume the company's target profit is $14,000.The unit sales to attain that target profit is closest to:

Question

Maziarz Corporation produces and sells a single product. Data concerning that product appear below:
 
-Assume the company's target profit is $14,000.The unit sales to attain that target profit is closest to:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $220.00 per unit - $72.60 per unit = $147.40 per unit
Unit sales to attain a target profit = (Target profit + Fixed expenses) ÷ Unit CM
= ($14,000 + $548,328) ÷ $147.40 per unit
=$562,328 ÷ $147.40 per unit = 3,815 units

Maziarz Corporation Produces and Sells a Single Product