Assume the company's target profit is $16,000.The dollar sales to attain that target profit is closest to:

A) $564,328
B) $1,710,085
C) $1,038,898
D) $842,281

Unit CM = Selling price per unit - Variable expenses per unit
= $220.00 per unit - $72.60 per unit = $147.40 per unit
CM ratio = Unit CM ÷ Unit selling price = $147.40 per unit ÷ $220.00 per unit = 0.67
Dollar sales to attain a target profit = (Target profit + Fixed expenses)÷ CM ratio
= ($16,000 + $548,328)÷ 0.67
= $564,328÷ 0.67
= $842,281
Reference: CHO6-Ref27
Speckman Enterprises, Inc., produces and sells a single product whose selling price is $200.00 per unit and whose variable expense is $68.00 per unit.The company's monthly fixed expense is $514,800.