Asked by Joshua Palesano on Apr 27, 2024
Verified
Caneer 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 $44,000 is closest to:
A) 7,896
B) 12,769
C) 6,578
D) 4,341
Unit Sales
The measurement of the number of individual items or units sold by a company.
Monthly Target Profit
The specific amount of profit a company aims to achieve within a month.
- Determine the required sales amount to attain a desired profit.
Verified Answer
NB
normarliana bidinApr 27, 2024
Final Answer :
C
Explanation :
Unit CM = Selling price per unit - Variable expenses per unit
= $240.00 per unit - $81.60 per unit
= $158.40 per unit
Unit sales to attain a target profit = (Target profit + Fixed expenses)÷ Unit CM
= ($44,000 + $997,920)÷ $158.40 per unit
= $1,041,920 ÷ $158.40 per unit
= 6,578 units
= $240.00 per unit - $81.60 per unit
= $158.40 per unit
Unit sales to attain a target profit = (Target profit + Fixed expenses)÷ Unit CM
= ($44,000 + $997,920)÷ $158.40 per unit
= $1,041,920 ÷ $158.40 per unit
= 6,578 units
Learning Objectives
- Determine the required sales amount to attain a desired profit.
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