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Simora [160]
3 years ago
9

Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 160.00 Variable expenses

per unit $ 91.50 Fixed expense per month $ 429,490 The unit sales to attain the company's monthly target profit of $19,000 is closest to:
Business
1 answer:
wolverine [178]3 years ago
5 0

Answer:

The unit sales to attain the company's monthly target profit of $19,000 is closest to 6,548

Explanation:

Units required to achieve a target sale must first cover the fixed cost (break even) then once the fixed costs are covered the extra units would meet the target profit.

<em>Units for Target Profit = (Fixed Cost + Target Profit)/Contribution per unit</em>

                                    = ($ 429,490+ $19,000) / ($ 160.00 - $ 91.50)

                                    = $ 448,490/ $68.50

                                    =  6547.29927

                                    = 6,548

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