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Target Profit Trailblazer Company sells a product for $225 per unit. The variable cost is $115...

Target Profit

Trailblazer Company sells a product for $225 per unit. The variable cost is $115 per unit, and fixed costs are $660,000.

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 $191,400.

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 $191,400
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Answer #1

a.

Breakeven point:

= $660,000 / ($225 - $115)

= 6,000 units

b.

Breakeven point:

= ($660,000 + $191,400) / ($225 - $115)

= 7,740 units

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