Cameron Corp. Cameron Corp. has the following product information:
Refer to the Cameron Corp. information above. How many units need to be sold in order to earn a target profit of $299,950?

Question

Cameron Corp. Cameron Corp. has the following product information:
 Refer to the Cameron Corp. information above. How many units need to be sold in order to earn a target profit of $299,950?

Quizplus · Accepted Answer

To calculate the number of units needed to earn a target profit of $299,950, we need to use the following formula:
Target profit = (Unit contribution margin × Number of units) - Fixed costs
Rearranging the formula, we get:
(Number of units) = (Target profit + Fixed costs) ÷ Unit contribution margin
Substituting the values, we get:
(Number of units) = ($299,950 + $2,042,500) ÷ $55
(Number of units) = $2,342,450 ÷ $55
(Number of units) = 42,499
Therefore, Cameron Corp. needs to sell 51,350 units (rounded up to the nearest whole number) to earn a target profit of $299,950.