Selling price $ 30   Variable expense ratio 80%   Fixed expenses $ 8,000 per month Unit sales 3,400 per month  How many units need to be sold to achieve a target profit of $16,150?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume the following information:

 
  Amount
Selling price $ 30  
Variable expense ratio 80%  
Fixed expenses $ 8,000 per month
Unit sales 3,400 per month
 

How many units need to be sold to achieve a target profit of $16,150?

Multiple Choice
  • 4,025 units

  • 1,003 units

  • 2,692 units

  • 6,092 units

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