Lin Corporation has a single product whose selling price is $135 and whose variable expense is $54 per unit. The company's monthly fixed expense is $40,400
Homework Answers
| 1. | |
| ( Unit sales * Selling price ) = ( Unit sales * Variable expense per unit ) + Fixed expenses + Target profit | |
| ( Unit sales * 135 ) = ( Unit sales * 54 ) + 40400 + 4150 | |
| 135Unit sales = 54Unit sales + 44550 | |
| 135Unit sales - 54Unit sales = 44550 | |
| 81Unit sales = 44550 | |
| Unit sales = 44550 / 81 | 550 |
| 2. | |
| Unit sales = ( Fixed expenses + Target profit ) / ( Selling price - Variable cost per unit ) = ( 40400 + 8800 ) / ( 135 - 54 ) | 607 |
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Lin Corporation has a single product whose selling price is $135
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