 Business
17 August, 12:10

# Lin Corporation has a single product whose selling price is \$140 per unit and whose variable expense is \$70 per unit. The company's monthly fixed expense is \$31,900. Required: 1. Calculate the unit sales needed to attain a target profit of \$6,250. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of \$9,400. (Round your intermediate calculations to the nearest whole number.)

+5
1. 17 August, 12:39
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The sales unit to achieve a target profit of \$6,250 is 545 units

The sales units to achieve to achieve a target profit of \$9,400 is 590 units

Explanation:

The quantity at target profit=fixed cost+target profit/contribution per unit

fixed expense=\$31,900

target profit \$6,250

contribution per unit=\$140-\$70

=\$70

unit sales at a target profit of \$6,250 = (\$31,900+\$6,250) / \$70

=545 sales units

fixed expenses \$31900

target profit of \$9400

contribution per unit is \$70

unit sales at a target profit of \$9,400 = (\$31900+\$9400) / \$70

=590 sales unit