Data concerning Cutshall Enterprises Corporation's single product appear below: The unit sales to attain the company's monthly target profit of $16,000 is closest to:

Question

Data concerning Cutshall Enterprises Corporation's single product appear below:  The unit sales to attain the company's monthly target profit of $16,000 is closest to:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $190.00 per unit - $91.20 per unit
= $98.80 per unit
Unit sales to attain a target profit = (Target profit + Fixed expenses)÷ Unit CM
= ($16,000 + $424,840)÷ $98.80 per unit
= $440,840 ÷ $98.80 per unit
= 4,462 units

Data Concerning Cutshall Enterprises Corporation's Single Product Appear Below