Upchurch Corporation produces and sells a single product.Data concerning that product appear below: Assume the company's target profit is $12,000.The unit sales to attain that target profit is closest to:

Question

Upchurch Corporation produces and sells a single product.Data concerning that product appear below:  Assume the company's target profit is $12,000.The unit sales to attain that target profit is closest to:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $100.00 per unit - $34.00 per unit = $66.00 per unit
Unit sales to attain a target profit = (Target profit + Fixed expenses)÷ Unit CM
= ($12,000 + $312,180)÷ $66.00 per unit
= $324,180 ÷ $66.00 per unit = 4,912 units

Upchurch Corporation Produces and Sells a Single Product