A furniture manufacturer specializes in wood tables. The tables sell for $140 per unit and incur $40 per unit in variable costs. The company has $10,380 in faced costs per month. The company desires to earn an operating profit of $6.370 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 250 11. Calculate the required sales in units to earn the target profit using the contribution margin method, = Required sales in units ( Fixed costs ( $ 16,380 + Target profit + $ 8,370 )1 CM per unit ) $ 91 250 12. Calculate the required sales in dollars to earn the target profit using the contribution margin ratio method Select the formula labels and then enter the amounts to compute the required sales in dollars. ( Fired costs + Target profit )! CM ratio = Required sales in dollars 16.380 + 6.370 , 85 % = 35,000