8) Hounshell Corporation produces and sells a single product. Data concerning th

Question

8) Hounshell Corporation produces and sells a single product. Data concerning that product appear below:

Assume the company%u2019s monthly target profit is $20,980. Determine the unit sales to attain that target profit.

Assume the company%u2019s monthly target profit is $7,760. Determine the dollar sales to attain that target profit. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

8) Hounshell Corporation produces and sells a single product. Data concerning that product appear below:

Explanation / Answer

Let the units be x ;

Sales Revenue = 136*x

Variable Expenses = 50.3*x

Fixed Expenses = 338960

Profit = Sales - Expenses = 136x - 50.3x - 338960 = 85.7x - 338960

20980 = 85.7x - 338960

x = 20980 + 338960 / 85.7 = 4200 units

Now for part b ) Profit = 7760

7760 = 85.7 x - 338960

x = 4045.75

Sales Revenue = 136*x = $ 550,220.77

NOw Other one

Margin of Safety (Dollars) = Sales - Break Even Sales = 36700*123 - 26466*123 = $1,258.782

Margin of Safety (%) = 1258782/(36700*123) = 0.2788 = 27.88 %

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