A furniture manufacturer specializes in wood tables. The tables sell for $150 per unit and incur $45 per unit in variable costs. The company has $17,850 in fixed costs per month. The company desires to earn an operating profit of $10,500 per month. (Abbreviation used; CM = contribution margin.) Read the requirements 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 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 270 11. Calculate the required sales in units to earn the target profit using the contribution margin method. Fixed costs Target profit CM per unit Required sales in units 17850 + 10500