Target ProfitTrailblazer Company sells a product for $210 per unit. The variable cost is $90 per unit, and fixed costs are $396,000.Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of$138,600.a. Break-even point in sales unitsunitsb. Break-even point in sales units if the company desires a target profit of $138,600units

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Asked Oct 31, 2019
Target Profit
Trailblazer Company sells a product for $210 per unit. The variable cost is $90 per unit, and fixed costs are $396,000.
Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of
$138,600.
a. Break-even point in sales units
units
b. Break-even point in sales units if the company desires a target profit of $138,600
units
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Target Profit Trailblazer Company sells a product for $210 per unit. The variable cost is $90 per unit, and fixed costs are $396,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $138,600. a. Break-even point in sales units units b. Break-even point in sales units if the company desires a target profit of $138,600 units

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Step 1

a. Determine break-even po...

Fixed costs (A)
$396,000
Selling price per unit
Less: Variable cost per unit
Contribution margin per unit (B)
$210
$90
$120
Break-even point in sales units = (A) / (B)
3,300
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Fixed costs (A) $396,000 Selling price per unit Less: Variable cost per unit Contribution margin per unit (B) $210 $90 $120 Break-even point in sales units = (A) / (B) 3,300

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