Asked by LAVISH SHUKLA on Jun 03, 2024
Verified
The number of units that must be sold to achieve a target profit of $16,100 is closest to:
A) 32,000 units
B) 19,400 units
C) 10,400 units
D) 23,000 units
Target Profit
The desired profit a company aims to achieve for a specific period or for a specific product.
Units Sold
The total number of product units a company sells within a specific period, a critical metric for analyzing sales performance and growth.
- Gain insight into how fixed and variable expenditures influence an enterprise's earnings and break-even level.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
C
Explanation : 
Unit sales to attain a target profit = (Target profit + Fixed expenses)÷ Unit CM
= ($16,100 + $56,700)÷ $7 per unit = $72,800÷ $7 per unit = 10,400 units
Reference: CHO6-Ref12
Maruca Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range.
Unit sales to attain a target profit = (Target profit + Fixed expenses)÷ Unit CM= ($16,100 + $56,700)÷ $7 per unit = $72,800÷ $7 per unit = 10,400 units
Reference: CHO6-Ref12
Maruca Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range.
Learning Objectives
- Gain insight into how fixed and variable expenditures influence an enterprise's earnings and break-even level.