Question

Lin corporation has a single product whose selling price is $134 and whose variable expense is $67 per unit. the company's monthly fixed expense is $32,300. 2.value: 2.00 pointsrequired information required: 1. using the equation method, determine for the unit sales that are required to earn a target profit of $7,900. (round up your answer to the nearest whole number.)

Answer 1

Answer:

600 units

Explanation:

The equation to calculate target profit is:  

S × Q = (V × Q) + F + T

• S = sales price  
• Q = Quantity of units
• V = Variable expenses
• F = Fixed expenses
• T = Target profit

$134Q = $67Q + $32,300 + $7,900

$134Q - $67Q = $40,200

$67Q = $40,200

Q = $40,200 / $67 = 600