Harrison Manufacturing
Harrison Manufacturing has the following product information available:
$\begin{array}{ll}
\text { Sales price } & \$ 50 \text { per unit } \
\text { Variable costs } & \$ 26 \text { per unit } \
\text { Fixed costs } & \$ 87600
\end{array}$
-What do total sales dollars need to be in order to earn a target profit of $200 400?

Question

Quizplus · Accepted Answer

To find the total sales dollars needed to earn a target profit, we first calculate the contribution margin per unit, which is the sales price per unit minus the variable cost per unit: $50 - $26 = $24. Then, we add the fixed costs and the target profit to find the total contribution margin needed: $87,600 + $200,400 = $288,000. Finally, we divide the total contribution margin needed by the contribution margin per unit to find the number of units needed: $288,000 / $24 = 12,000 units. To find the total sales dollars, multiply the number of units by the sales price per unit: 12,000 units * $50 = $600,000.

Harrison Manufacturing Harrison Manufacturing Has the Following Product Information Available

Harrison Manufacturing
Harrison Manufacturing Has the Following Product Information Available