Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 160.00 Variable expense per unit $ 65.60 Fixed expense per month $ 387,040 The unit sales to attain the company's monthly target profit of $17,000 is closest to: (Round your intermediate calculations to 2 decimal places.)

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Answer:

the unit sales to attain the monthly target profit is 4,280.08 units

Explanation:

The computation of the unit sales to attain the monthly target profit is shown below:

= (Fixed expense + target profit) ÷ (selling price per unit - variable cost per unit)

= ($387,040 + $17,000) ÷ ($160 - $65.60)

= $404,040 ÷ $94.40 per unit

= 4,280.08 units

Hence, the unit sales to attain the monthly target profit is 4,280.08 units

The unit sales that Data concerning Bedwell Enterprises corporation needs to attain to achieve the target profit of $ 17,000 is closest to 4,280 units. (4,280.08)

What is target profit?

The estimated amount of profit that a business's managers hope to accomplish by the conclusion of a certain accounting period is known as target profit.

[tex]\rm\,Target\,Profit\,or\,Break\,even\,point = \dfrac{\rm\,Fixed\,expense + Target\,Profit}{\rm\,Sales\,-\,Variable\,expense}\\\\[/tex]

Here, in the given case the following information is provided:

  • The selling price per unit is equal to $160.00
  • Variable expense per unit is equal to $ 65.60
  • Fixed expense is equal to $387,040
  • Target profit is equal to $ 17,000

[tex]\rm\,Target\,Profit\,or\,Break\,even\,point = \dfrac{\rm\,Fixed\,expense + Target\,Profit}{\rm\,Sales\,-\,Variable\,expense}\\\\\\= \rm \dfrac{\$\,387,040\,+\,\$17,000}{\$160.00\,-\$65.60}\\\\ \\= \dfrac{\rm\,\$404,040}{\$94.4}\\\\= \rm\,4,280.08\,units\\\\= \rm\,4,280\rm\,units[/tex]

Therefore, the enterprise needs to make 4,280 units of sales to attain a target profit of $17,000.

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