Perona 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 $9,000 is closest to:

Question

Perona 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 $9,000 is closest to:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $160.00 per unit - $70.40 per unit
= $89.60 per unit
Unit sales to attain a target profit = (Target profit + Fixed expenses)F1F1F1S1F1F1F10 Unit CM
= ($9,000 + $385,280)F1F1F1S1F1F1F10 $89.60 per unit
= $394,280 F1F1F1S1F1F1F10 $89.60 per unit
= 4,400 units

Perona Corporation Produces and Sells a Single Product