Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 235.00 Variable expense per unit $ 99.00 Fixed expense per month $ 452,740 The unit sales to attain the company's monthly target profit of $34,000 is closest to: (Do not round intermediate calculations.) Brewer 8e Rechecks 2018-06-19

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Business

Hanna Hampton

1 March, 05:19

Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 235.00 Variable expense per unit $ 99.00 Fixed expense per month $ 452,740 The unit sales to attain the company's monthly target profit of $34,000 is closest to: (Do not round intermediate calculations.) Brewer 8e Rechecks 2018-06-19

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Calvin · Answer 1

3,579 units

Explanation:

Computation of the given data are as follows:

Contribution Margin = Selling price - Variable expense

= $235 - $99 = $136

So, to achieve target profit of $34,000

Target Contribution margin = Fixed expense + Target profit

= $452,740 + $34,000

= $486,740

So, sales unit = Target contribution margin : Contribution margin

= $486,740 : $136

= 3,578.97 or 3,579 units