Cassius Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range. The number of units that must be sold to achieve a target profit of $31,500 is closest to:
A) 42,000 units
B) 16,400 units
C) 35,000 units
D) 9,400 units

Question

Cassius Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range.  The number of units that must be sold to achieve a target profit of $31,500 is closest to:
A) 42,000 units 
B) 16,400 units 
C) 35,000 units 
D) 9,400 units

Quizplus · Accepted Answer

11ea7761_185b_496c_81a5_3576807838bf_TB2580_00 Unit sales to attain a target profit = (Target profit + Fixed expenses) ÷ Unit CM
= ($31,500 + $67,200) ÷ $10.50 per unit = $98,700 ÷ $10.50 per unit = 9,400 units

Cassius Corporation Has Provided the Following Contribution Format Income Statement