16. Bruiser Corporation has a single product whose selling price is $130 per unit and whose...
16. Bruiser Corporation has a single product whose selling price is $130 per unit and whose variable cost is $85 per unit. Monthly fixed costs are $25,000. If the goal is to earn a monthly target profit of $75,000, what is the targeted sales units AND dollars that would be required for the month (ignoring taxes)?
Homework Answers
Sales needed = (Fixed costs + Target profit) /Contribution margin per unit
= (25,000+75,000)/(130-85)
= 2222 units
Dollars needed
= (25,000+75,000)/34.62%
= 288,860
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