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Data concerning Bedwell Enterprises Corporation's single product appear below:

Selling price per unit $ 240.00
Variable expenses per unit $ 99.50
Fixed expense per month $ 454,290

The unit sales to attain the company's monthly target profit of $35,000 is closest to $_____. (Do not round intermediate calculations.)

Answer :

Answer:

unit sales = $3482.49

Explanation:

given data

Selling price per unit  = $240.00

Variable expenses per unit = $99.50

Fixed expense per month = $454,290

monthly target profit =  $35,000

solution

we get here contribution margin that is express as

contribution margin = Sales - Variable cost    ..................1

put here value

contribution margin = $240 - $99.50

contribution margin =  $140.50

so here Target Contribution margin will be

Target Contribution margin = Fixed cost + Target profits    ...............2

put here value

Target Contribution margin = $454,290 + $35,000

Target Contribution margin = $489290

so here unit sales will be as

unit sales = [tex]\frac{489290}{140.5}[/tex]

unit sales = $3482.49

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