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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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