Asked by Marina González on Jun 20, 2024
Verified
Brihon Corporation produces and sells a single product. Data concerning that product appear below:
Required: a. Assume the company's monthly target profit is $12,650. Determine the unit sales to attain that target profit.b. Assume the company's monthly target profit is $63,250. Determine the dollar sales to attain that target profit.
Target Profit
The profit a company aims to achieve in a specific period.
Dollar Sales
Total revenue generated from the sale of goods and services, measured in dollars.
Unit Sales
The quantity of products sold, not considering the sales price or revenue.
- Determine unit sales and dollar sales to attain specific target profits.
Verified Answer
JH
Jaylen HeffnerJun 21, 2024
Final Answer : 
a.Unit sales to attain target profit = (Target profit + Fixed expenses) ÷ Unit contribution margin= ($518,650 + $12,650) ÷ $126.50 per unit = 4,200 unitsb.Dollar sales to attain target profit = (Target profit + Fixed expenses) ÷ Contribution margin ratio= ($518,650 + $63,250) ÷ 0.55 = $1,058,000
a.Unit sales to attain target profit = (Target profit + Fixed expenses) ÷ Unit contribution margin= ($518,650 + $12,650) ÷ $126.50 per unit = 4,200 unitsb.Dollar sales to attain target profit = (Target profit + Fixed expenses) ÷ Contribution margin ratio= ($518,650 + $63,250) ÷ 0.55 = $1,058,000
Learning Objectives
- Determine unit sales and dollar sales to attain specific target profits.
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