Simin Corporation has a single product; its selling price is$140 and its variable cost is $60 per unit. The companyâs monthlyfixed expense is $40,000.
Using the equation method, solve for the unit sales thatare required to earn a target profit before tax of$6,000.
Using the contribution margin approach, solve for thedollar sales that are required to earn a target profit before taxof $8,000.
Calculate the number of units that need to be sold toearn a after-tax income of $7,700, assuming a tax rate of30%.
Simin Corporation has a single product; its selling price is$140 and its variable cost is $60 per unit. The companyâs monthlyfixed expense is $40,000.
Using the equation method, solve for the unit sales thatare required to earn a target profit before tax of$6,000.
Using the contribution margin approach, solve for thedollar sales that are required to earn a target profit before taxof $8,000.
Calculate the number of units that need to be sold toearn a after-tax income of $7,700, assuming a tax rate of30%.
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Exercise 5-7 Compute the Level of Sales Required to Attain aTarget Profit [LO5-6]
[The following information applies to the questionsdisplayed below.] |
Lin Corporation has a single product whose selling price is $135and whose variable expense is $54 per unit. The companyâs monthlyfixed expense is $40,280. |
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Section BreakExercise 5-7 Compute the Level ofSales Required to Attain a Target Profit [LO5-6]
4.
value:
2.00 points
Required information
Exercise 5-7 Part 1
| Required: | |
| 1. | Using the equation method, determine for the unit sales that arerequired to earn a target profit of $6,700. |
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Hint #1
5.
value:
2.00 points
Required information
Exercise 5-7 Part 2
| 2. | Using the formula method, determine for the unit sales that arerequired to earn a target profit of $9,100.(Round youranswer to the nearest whole number.) |
