Asked by marta kebede on Jul 22, 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.Show your work!
b.Assume the company's monthly target profit is $63,250.Determine the dollar sales to attain that target profit.Show your work!
Target Profit
The desired net income a company aims to achieve within a specific period, often used for setting sales targets and pricing strategies.
Dollar Sales
The total value of sales within a specific period, measured in monetary terms.
Unit Sales
The number of individual units of a product sold in a specific time period.
- Conduct analysis of target profit in both units and financial sales figures.
Verified Answer
RR
RACHEL R.A PIONGJul 25, 2024
Final Answer : 
a.Unit sales to attain target profit = (Target profit + Fixed expenses)÷ Unit CM
= ($518,650 + $12,650)÷ $126.50 per unit = 4,200 units
b.Dollar sales to attain target profit = (Target profit + Fixed expenses)÷ CM ratio
= ($518,650 + $63,250)÷ 0.55 = $1,058,000
a.Unit sales to attain target profit = (Target profit + Fixed expenses)÷ Unit CM= ($518,650 + $12,650)÷ $126.50 per unit = 4,200 units
b.Dollar sales to attain target profit = (Target profit + Fixed expenses)÷ CM ratio
= ($518,650 + $63,250)÷ 0.55 = $1,058,000
Learning Objectives
- Conduct analysis of target profit in both units and financial sales figures.
Related questions
Brihon Corporation Produces and Sells a Single Product ...
Rachal Corporation Produces and Sells a Single Product Whose Selling ...
Speckman Enterprises, Incorporated, Produces and Sells a Single Product Whose ...
Assume the Company's Target Profit Is $17,000 ...
Assume the Company's Target Profit Is $16,000 ...