Question

I was thinking the answer is 1,625 and its apparently wrong

+ → C r ewconnect. meducation.com/how/connect.html Chapter 5 Homework Help Seve & Exit Submit Check my work Lin Corporation has a single product whose selling price is $120 per unit and whose variable expense is $80 per unit. The companys monthly fixed expense is S50 000 125 Dants Required: 1. Calculate the unit sales needed to attain a target profit of $10,000. 2. Calculate the dollar salos needed to attain a target profit of $15,000. (For all requirements, do not round intermediate calculations.) 1500 1. Units was to win ay soit 2. Dollar sales to attain target profit References < Prey 3 of 8 fii Next > 1232 PM .

Answer 1

	Per Unit
Selling Price	$120.00
Variable cost	$80.00
Contribution margin	$40.00
Contribution margin ratio =	Contribution margin per unit/selling price per unit
=	$40 / $120
=	33.3333%
Unit sales at target income =	(Fixed costs + Target income)/ Contribution margin per unit
=	($50,000 + $10,000)/ $40
=	1,500
Dollar sales at target income =	(Fixed costs + Target income)/ Contribution margin ratio
=	($50,000 + $10,000)/ 33.3333%
=	$180,000