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21 July, 02:08

Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 190.00 Variable expenses per unit $ 94.50 Fixed expense per month $ 438,790 The unit sales to attain the company's monthly target profit of $25,000 is closest to: (Do not round intermediate calculations.)

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  1. 21 July, 02:47
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    Target sales unit = 4,856 units

    Explanation:

    We know,

    Target sales unit = (Fixed expense + Target profit) : (Sales price per unit - Variable expense per unit)

    Given,

    Fixed expense = $438,790

    Sales price per unit = $190.00

    Target profit = $25,000

    Variable expense per unit = $94.50

    Putting the values into the above formula,

    Target sales unit = ($438,790 + $25,000) : ($190.00 - 94.50)

    or, Target sales unit = $463,790 : $95.50

    Therefore, Target sales unit = 4,856 units
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