Answer:
The answer is = 1,262,000units
Explanation:
Fixed cost = $648,640
Unit selling price = $7.40
Unit cost price = $5.68
Target profit/net income= $1,522,000
Unit Contribution margin = Unit selling price - unit variable cost
$7.40 - $5.68
=$1.72
Sales in units to achieve its target net income = (fixed Cost + target profit or net income)/unit contribution margin
($648,640 + $1,522,000)/$1.72
=$2,170,649 / $1.72
=1,262,000units
Therefore, Sheridan Corporation needs to sell =1,262,000units to achieve a target income of $1,522,000.
