Data concerning Cutshall Enterprises corporation's single product appear below: Note: fixed or variable Expenses is the...

Data concerning Cutshall Enterprises corporation's single product appear below: Note: fixed or variable Expenses is the same as fixed or variable costs.

Selling price per unit....$190.00

Variable expense per unit...$91.20

Fixed expenses per month...$424.840

the unit sales to attain the company 's monthly target profit of $16.000 is closest to:

A) 3,872

B)2,320

C)4,834

D)4,462

Solutions

Expert Solution

Working notes:
	CALCULATION OF CONTRIBUTION MARGIN PER UNIT

	PARTICULARS	Product
	Selling Price Per Unit=	$ 190.00

	Less: Variable Cost	$ 91.20

	Contribution Margin per unit	$ 98.80

Solution:
	Target Profit = ( Fixed Cost + target Income ) / Contribution Margin per unit

	Target Profit =
	Fixed Cost =	$ 4,24,840
	Add:	"+ "
	Target Income =	$ 16,000
	Equal to =	$ 4,40,840
	Divide By	"/"By
	Contribution marrgin per unit	$ 98.80
	Equal to =	4,462	Units



	Answer = Option D = 4,462 Units

ekkarill92 answered 1 year ago

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