Harrison Manufacturing
Harrison Manufacturing has the following product information available:
$\begin{array}{ll}
\text { Sales price } & \$ 50 \text { per unit } \
\text { Variable costs } & \$ 26 \text { per unit } \
\text { Fixed costs } & \$ 87600
\end{array}$
-How many units need to be sold in order to earn a target profit of $175 000?

Question

Quizplus · Accepted Answer

To find the number of units needed to achieve a target profit, use the formula: $\text{Units} = \frac{\text{Fixed Costs} + \text{Target Profit}}{\text{Sales Price per Unit} - \text{Variable Cost per Unit}}$. Substituting the given values: $\text{Units} = \frac{87600 + 175000}{50 - 26} = \frac{262600}{24} = 10941.67$. Rounding up, 10,942 units need to be sold.

Harrison Manufacturing Harrison Manufacturing Has the Following Product Information Available

Harrison Manufacturing
Harrison Manufacturing Has the Following Product Information Available