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5. CVP Analysis; Target Profit (2pts): L. Gott Corporation produces and sells a single product. Data concerning that product appear below Selling price per unit
5. CVP Analysis; Target Profit (2pts): L. Gott Corporation produces and sells a single product. Data concerning that product appear below Selling price per unit Variable expense per unit Fixed expense per month $230.00 $ 103.50 $ 518,650 a. Assume the company's monthly target profit is $12,650. Determine the unit sales to attain that target profit. b. Assume the company's monthly target profit is $63,250. Determine the dollar sales to attain that target profit. 6. CVP Analysis (2pts) Hunter Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales $100 Selling price Variable expenses 100% 30% 70% 30 Contribution margin 70 Fixed expenses are $234,000 per month. The company is currently selling 4,000 units per month Management is considering using a new component that would increase the unit variable cost by $7 Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected
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