Explore BrainMass

Explore BrainMass

    Hounshell Corporation: Compute unit and dollar sales for tar

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please also see attached file.

    Hounshell Corporation produces and sells a single product. Data concerning that product appear below:

    Selling price per unit $121.00
    Variable expense per unit $48.80
    Fixed expense per month $268,720

    Required:
    a. Assume the company's monthly target profit is $20,080. Determine the unit sales to attain that target profit.

    Unit sales to attain target profit ___________units

    b. Assume the company's monthly target profit is $7,060. Determine the dollar sales to attain that target profit. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

    Dollar sales to attain target profit $______________

    © BrainMass Inc. brainmass.com June 4, 2020, 12:53 am ad1c9bdddf
    https://brainmass.com/business/accounting/hounshell-corporation-compute-unit-dollar-sales-365860

    Attachments

    Solution Preview

    Target profit is an extension of break-even analysis....you add the target profit to the fixed costs to get the level needed. Here are the two potential formulas....you need the first one for a and the second ...

    Solution Summary

    Formulas are given and computed for Hounshell Corporation.

    $2.19

    ADVERTISEMENT