Question

Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 185.00 Variable expense per unit $ 94.00 Fixed expense per month $ 437,240 The unit sales to attain the company's monthly target profit of $24,000 is closest to: (Do not round intermediate calculations.) Brewer 8e Rechecks 2018-06-19 Multiple Choice 4,805 2,493 4,907 5,069

Answer 1

5,069 units

Step-by-step explanation:

The computation of the units sales to achieve monthly target profit is shown below:

Unit sales is

= (Fixed cost + target profit) ÷ (contribution margin per unit)

= ($437,240 + $24,000) ÷ ($185 - $94)

= ($461,240) ÷ ($91)

= 5,069 units

We simply applied the above formula so that the correct value could come

And, the same is to be considered