A furniture manufacturer specializes in wood tables. The tables sell for $100 and incur $40 in variable costs. The company has $5,000 in fixed costs per month. The company desires to earn an operating profit of $12,000 per month. (Abbreviation used: CM = contribution margin.) Read the requirement Calculate the required sales in units to earn the target profit using the equation method. First, select the formula to compute the target profit. 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 Calculate the required sales in units to earn the target profit using the contribution margin method. Calculate the required sales in units to earn the target profit using the contribution margin method. = Required sales in units Calculate the required sales in dollars to earn the target profit using the contribution margin method. Select the formula labels and then enter the amounts to compute the required sales in units to break even using the contribution margin method