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17 October, 16:19

Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 235.00 Variable expense per unit $ 99.00 Fixed expense per month $ 452,740 The unit sales to attain the company's monthly target profit of $34,000 is closest to: (Do not round intermediate calculations.) Brewer 8e Rechecks 2018-06-19

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  1. 17 October, 16:33
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    3,579 units

    Explanation:

    Computation of the given data are as follows:

    Contribution Margin = Selling price - Variable expense

    = $235 - $99 = $136

    So, to achieve target profit of $34,000

    Target Contribution margin = Fixed expense + Target profit

    = $452,740 + $34,000

    = $486,740

    So, sales unit = Target contribution margin : Contribution margin

    = $486,740 : $136

    = 3,578.97 or 3,579 units
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