Liman Company has a single product whose selling price is $140 and whose variable expense is $60 per unit. The companys fixed expense is $40,000. REQUIRED Using the equation method, solve for the units required to earn a target profit of $6,000 Selling price Variable expenses Fixed Expenses = Target profit 140U 60U 40,000 = 6,000 80U = 46,000 46,000 / 80 = 575 units (Fixed Costs + Target Income)/CM 46,000 / 80 Using the formula method, solve for the dollar sales that are required to earn a target profit of $8,000 If tax rate is 40%, how many units should be sold to earn a target after tax profit of $6,000? Selling price Variable expenses Fixed Expenses = Target profit / (1 T) 140U 60U 40,000 = 6,000 / (1 - .40) 140U 60U 40,000 = 6,000/.60 80U 40,000 = 10,000 80U = 50,000 50,000/80