In 2019, X Company sold 5,900 units of its only product. Total revenue was $1,499,190, total...

Question

Question

In 2019, X Company sold 5,900 units of its only product. Total revenue was $1,499,190, total variable costs were $605,930, an

Answer 1

Answer #1

--Requirement

A	Target profit	$30,000
B = 625000 - 44600	Total fixed cost	$580,400
C = A+B	Total contribution margin required	$610,400

D = ($1499190 / 5900)	Sale price per unit	$254.10
E = ($605930/5900) - $ 3.20	New Variable cost per unit	$99.50
F = D - E	New contribution margin per unit	$154.60

G = C/F	Units required to be sold to earn target income	3,948	Answer

Answer 2

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