Exercise 5-7 Compute the Level of Sales Required to Attain a Target Profit [LO5-6]

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Lin Corporation has a single product whose selling price is $136 and whose variable expense is $68 per unit. The companys monthly fixed expense is $31,650.

Exercise 5-7 Part 1

Required:

1.

Using the equation method, determine for the unit sales that are required to earn a target profit of $5,750. (Round up your answer to the nearest whole number.)

Unit sales

Exercise 5-7 Part 2

2.

Using the formula method, determine for the unit sales that are required to earn a target profit of $9,900. (Round up your answer to the nearest whole number.)

Unit sales