Sanes Corporation produces and sells a single product.Data concerning that product appear below: The unit sales to attain the company's monthly target profit of $19, 000 is closest to:

Question

Sanes Corporation produces and sells a single product.Data concerning that product appear below:  The unit sales to attain the company's monthly target profit of $19, 000 is closest to:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $240.00 per unit - $88.80 per unit
= $151.20 per unit
Unit sales to attain a target profit = (Target profit + Fixed expenses)÷ Unit CM
= ($19, 000 + $498, 960)÷ $151.20 per unit
= $517, 960 ÷ $151.20 per unit
= 3, 426 units

Sanes Corporation Produces and Sells a Single Product