Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company’s monthly fixed expense is $31,800.
Required:
1. Calculate the unit sales needed to attain a target profit of $6,700. (Do not round intermediate calculations.)
2. Calculate the dollar sales needed to attain a target profit of $9,600. (Round your intermediate calculations to the nearest whole number.)
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Contribution margin=Sales-Variable cost
=(140-70)=$70 per unit
Contribution margin ratio=Contribution margin/Sales
=70/140=0.5
a.Target contribution margin=Fixed cost+Target profit
=(31800+6700)=$38500
Hence target sales=Target contribution margin/contribution margin per unit
=(38500/70)
=550 units.
b.Target contribution margin=Fixed cost+Target profit
=(31800+9600)=$41400
Hence target sales=Target contribution margin/contribution margin ratio
(41400/0.5)
=$82800
Lin Corporation has a single product whose selling price is $140 per unit and whose variable...
Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company's monthly fixed expense is $31,800. Required: 1. Calculate the unit sales needed to attain a target profit of $6,700. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,600. (Round your intermediate calculations to the nearest whole number.) 1. Units sales to attain target profit 2. Dollar sales to...
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Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company's monthly fixed expense is $32,600. Required: 1. Calculate the unit sales needed to attain a target profit of $6,250. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $8,000. (Round your intermediate calculations to the nearest whole number.) 1. Units sales to attain target profit 2. Dollar sales to...
Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company's monthly fixed expense is $31,900. Required: 1. Calculate the unit sales needed to attain a target profit of $6,250. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,400. (Round your intermediate calculations to the nearest whole number.) 1. Units sales to attain target profit 2. Dollar sales to...
Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company's monthly fixed expense is $31,900. Required: 1. Calculate the unit sales needed to attain a target profit of $6,250. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,400. (Round your intermediate calculations to the nearest whole number.) units 1. Units sales to attain target profit 2. Dollar sales...
Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company's monthly fixed expense is $32,500. Required: 1. Calculate the unit sales needed to attain a target profit of $7,050. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $8,200. (Round your intermediate calculations to the nearest whole number.) units 1. Units sales to attain target profit 2. Dollar sales...
Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company's monthly fixed expense is $32,600. Required: 1. Calculate the unit sales needed to attain a target profit of $6,250. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $8,000. (Round your intermediate calculations to the nearest whole number.) Answer is complete but not entirely correct. Units sales to attain...
Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company's monthly fixed expense is $32,250. Required: 1. Calculate the unit sales needed to attain a target profit of $8.000. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $8,700. (Round your intermediate calculations to the nearest whole number.) 1. Units sales to attain target profit 2. Dollar sales to...