au Detenine the unit säles to attain that target profit. Problem #3 Brihon Corpo

Question

au Detenine the unit säles to attain that target profit. Problem #3 Brihon Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit Variable expense per unit Fixed expense per month 230.00 103.50 518,650 Required: a. Assume the company's monthly target profit is $12,650. Determine the unit sales to attain that target profit b. Assume the company's monthly target profit is $63,250. Determine the dollar sales to attain that target profit. Type here to search

Explanation / Answer

1

Units must be sold to earn desired profit = (Desired profit+Fixed cost)/Contribution per unit

Fixed cost per month

$518,650

Target profit

$12,650

Contribution margin per unit
(230-103.50)

$127

Unit of sales required =
(518,650+12,650)/126.5

             4,200

Units

2

Units must be sold to earn desired profit = (Desired profit+Fixed cost)/Contribution per unit

Fixed cost per month

$518,650

Target profit

$63,250

Contribution margin per unit
(230-103.50)

$127

Unit of sales required =
(518,650+12,650)/126.5

             4,600

Units

1

Units must be sold to earn desired profit = (Desired profit+Fixed cost)/Contribution per unit

Fixed cost per month

$518,650

Target profit

$12,650

Contribution margin per unit
(230-103.50)

$127

Unit of sales required =
(518,650+12,650)/126.5

             4,200

Units

2

Units must be sold to earn desired profit = (Desired profit+Fixed cost)/Contribution per unit

Fixed cost per month

$518,650

Target profit

$63,250

Contribution margin per unit
(230-103.50)

$127

Unit of sales required =
(518,650+12,650)/126.5

             4,600

Units

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