Data concerning Matsumoto Corporation's single product appear below: Assume the company's target profit is $5,000.The unit sales to attain that target profit is closest to:

Question

Data concerning Matsumoto Corporation's single product appear below:  Assume the company's target profit is $5,000.The unit sales to attain that target profit is closest to:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $130.00 per unit - $52.00 per unit = $78.00 per unit
Unit sales to attain a target profit = (Target profit + Fixed expenses)÷ Unit CM
= ($5,000 + $280,800)÷ $78.00 per unit
= $285,800 ÷ $78.00 per unit = 3,664 units

Data Concerning Matsumoto Corporation's Single Product Appear Below: Assume