Run Like the Wind sells ceiling fans. Target profit for the year is $470,000. If each fan's contribution margin is $32 and fixed costs total $222,640, the number of fans required to meet the company's goal is:a. 14,688

b. 6,958

c. 21,645

d. 7,730

c. 21,645

Explanation:

The computation of number of fans required to meet the company's goal is shown below:

= (Fixed cost + target profit) : (Contribution margin per unit)

= ($222,640 + $470,000) : ($32)

= ($692,640) : ($32)

= $21,645

The contribution margin per unit = Selling price per unit - Variable expense per unit

Therefore, the number of fans equal to $21,645

We calculated by above formula.