Target Profit Forest Company sells a product for $215 per unit. The variable cost is $90 per unit, and fixed costs are $762,500. Determine (a) the break-even point in sales units and (b) the break-even point in sales units required for the company to achieve a target profit of $266,875. a. Break-even point in sales units units b. Break-even point in sales units required for the company to achieve a target profit of $266,875 units
Target Profit Forest Company sells a product for $215 per unit. The variable cost is $90 per unit, and fixed costs are $762,500. Determine (a) the break-even point in sales units and (b) the break-even point in sales units required for the company to achieve a target profit of $266,875. a. Break-even point in sales units units b. Break-even point in sales units required for the company to achieve a target profit of $266,875 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Target Profit
Forest Company sells a product for $215 per unit. The variable cost is $90 per unit, and fixed costs are $762,500.
Determine (a) the break-even point in sales units and (b) the break-even point in sales units required for the company to achieve a target profit of $266,875.
| a. Break-even point in sales units | units | |
| b. Break-even point in sales units required for the company to achieve a target profit of $266,875 | units |
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