Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 160.00 Variable expenses per unit $ 91.50 Fixed expense per month $ 429,490 The unit sales to attain the company's monthly target profit of $19,000 is closest to:

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Business

Rory

9 August, 08:25

Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 160.00 Variable expenses per unit $ 91.50 Fixed expense per month $ 429,490 The unit sales to attain the company's monthly target profit of $19,000 is closest to:

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Caylee Singh · Answer 1

The unit sales to attain the company's monthly target profit of $19,000 is closest to 6,548

Explanation:

Units required to achieve a target sale must first cover the fixed cost (break even) then once the fixed costs are covered the extra units would meet the target profit.

Units for Target Profit = (Fixed Cost + Target Profit) / Contribution per unit

= ($ 429,490 + $19,000) / ($ 160.00 - $ 91.50)

= $ 448,490 / $68.50

= 6547.29927

= 6,548