Data concerning Celenza Corporation's single product appear below:
-Assume the company's monthly target profit is $18,000.The dollar sales to attain that target profit are closest to:

Question

Data concerning Celenza Corporation's single product appear below: 
-Assume the company's monthly target profit is $18,000.The dollar sales to attain that target profit are closest to:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $230.00 per unit - $59.80 per unit = $170.20 per unit
CM ratio = Unit CM F1F1F1S1F1F1F10 Unit selling price = $170.20 per unit F1F1F1S1F1F1F10 $230.00 per unit = 0.74
Dollar sales to attain a target profit = (Target profit + Fixed expenses)F1F1F1S1F1F1F10 CM ratio
= ($18,000 + $697,820)F1F1F1S1F1F1F10 0.74
=$715,820 F1F1F1S1F1F1F10 0.74 = $967,324

Data Concerning Celenza Corporation's Single Product Appear Below