Question
A furniture manufacturer specializes in wood tables. The tables sell for $150 per unit and incur $60 per unit in variable costs. The company has
A furniture manufacturer specializes in wood tables. The tables sell for
$150
per unit and incur
$60
per unit in variable costs. The company has
$7,200
in fixed costs per month. The company desires to earn an operating profit of
$17,100
per month. (Abbreviation used; CM = contribution margin.)Read the requirements
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Part 1
10. Calculate the required sales in units to earn the target profit using the equation method.
First, select the formula to compute the target profit.
Net sales revenue | - | Variable costs | - | Fixed costs | = | Target profit |
Part 2
Rearrange the formula you determine above and compute the required sales in units.
The required sales in units to earn the target profit using the equation method is | . |
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