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Solve for Unit Sales

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Lin Corporation has a single product whose selling price is $120 and whose variable cost is $80 per unit. The company's monthly fixed expense is $50,000.

Required:
1. using the equation method, solve for the unit sales that are required to earn a target profit of $10,000.
2. using the contribution margin approach, solve for the dollar sales that are required to earn a target profit of $15,000.

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This Solution contains calculations to aid you in understanding the Solution to these questions.

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1. Using the equation method, solve for the unit sales that are required to earn a target profit of $10,000.
Let the sales be x,

x*(Sales-variable ...

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