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Profit Planning: Determine the number of units you must sell to make an annual pre-tax profit using 3 assumptions concerning your net income (profit), both
Profit Planning: Determine the number of units you must sell to make an annual pre-tax profit using 3 assumptions concerning your net income (profit), both in sales units and sales dollars.
- Aggressive Profit ($300,000)
Sale units:
PQ=VQ+F+Y
$5.54Q = $3.58Q + $78,540 + $300,000
$1.96Q = $378,540
Q=$378,540/$1.96
Q= $193,132.65
Sale Dollars:
- Conservative Profit ($100,000)
Sales Units:
(F+Y)/CM
($78,540 + $100,000)/1.96= $91091.84
Sales Dollars:
- Average Profit ($227,710)
Sales Units:
(F+Y)/CM
($78,540+$227,710)/1.96=$156,250
Sale Dollars:
need to check to see if my calcultions are correct and I need help with calculating sale dollars
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