Target Profit

Forest Company sells a product for $140 per unit. The variable cost is $60 per unit, and fixed costs are $248,000.

Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $49,600.

a. Break-even point in sales units units

b. Break-even point in sales units if the company desires a target profit of $49,600 units