Lin Corporation has a single product, whose selling price is $200 and whose variable cost is 60% of sales price. The company's monthly fixed expenses are $60,000. Required: 1. Using the equation method, compute the unit sales that are required to earn a target before-tax profit of $10,000. Unit sales 60 2. Using the contribution margin approach, compute the dollar sales that are required to earn a target before-tax profit of $15.000. (Do not round Intermedlate calculations. Round your final answer to the nearest whole dollar amount.)

Lin Corporation has a single product, whose selling price is $200 and whose variable cost is 60% of sales price. The company's monthly fixed expenses are $60,000. Required: 1. Using the equation method, compute the unit sales that are required to earn a target before-tax profit of $10,000. Unit sales 60 2. Using the contribution margin approach, compute the dollar sales that are required to earn a target before-tax profit of $15.000. (Do not round Intermedlate calculations. Round your final answer to the nearest whole dollar amount.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6EA: Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of...

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