A recent income statement of the Norwood Corporation reported the following data:
Units sold 8700
Sales revenue $7,200,000
Variable costs 4,000,000
Fixed costs 1,700,000
If Norwood desires to earn a target net profit of $480,000, how many units would it have to sell?© BrainMass Inc. brainmass.com June 3, 2020, 10:01 pm ad1c9bdddf
For a target net profit units to be sold = (Fixed cost + target net profit)/unit ...
This solution shows step-by-step calculations to determine how many units Norwood Corporation would have to sell to attain a profit of $480,000.