A furniture manufacturer specializes in wood tables. The tables sell for $$100$ per unit and incur $$40$ per unit in variable costs. The company has $$6,000$ in fixed costs per month. The company desires to earn an operating profit of $$12,000$ per month. $($Abbreviation used; $CM=$ contribution margin.$)$

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$10.$ Calculate the required sales in units to earn the target profit using the equation method.

First, select the formula to compute the target profit.

$-$ Variable costs $-$ Fixed costs $=$ Target profit

Rearrange the formula you determine above and compute the required sales in units.

Required sales in units to earn target profit using equation method $=$

$11.$ Calculate the required sales in units to earn the target profit using the contribution margin method.

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