Question

Data concerning cutshall enterprises corporation's single product appear below:selling price per unit $ 205.00variable expense per unit $ 96.00fixed expense per month $ 443,440the unit sales to attain the company's monthly target profit of $28,000 is closest to

Answer 1

The unit sales to attain the company's monthly target of $28,000 is closest to 4325 units.

We follow these steps to derive the answer:

Let the number of units to be sold be 'x'.

Since

Profit = Total Revenues - (Variable Cost +Fixed Cost), we get

$28,000 = $205x - ($96x+$443440)

$28,000 = $109x - 443,440

$471440 = $109x

x = 4325.137615 ($471440/$109).