Grayson Corporation produces and sells a single product. Data concerning that product appear below:

Selling price per unit	$230.00
Variable cost per unit	$92.00
Fixed cost per month	$621,000

Required: a. Assume the company's monthly target profit is $69,000. Determine the unit sales to attain that target profit. b. Assume the company's monthly target profit is $41,400. Determine the dollar sales to attain that target profit.

	Per Unit	Percent of Sales
Selling price per unit	$230.00	100%
Variable cost per unit	92.00	40%
Contribution margin per unit and CM ratio	$138.00	60%

Answer:

a. Unit sales to attain target profit = (Target profit + Fixed costs) Unit CM

b. Dollar sales to attain target profit = (Target profit + Fixed costs) CM ratio