Target ProfitTrailblazer Company sells a product for $95 per unit. The variable cost is $55 per unit, and fixed costs are $312,000.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 $65,520.a. Break-even point in sales unitsunitsb. Break-even point in sales units if the company desires a target profit of $65,520units

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Asked Sep 28, 2019
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Target Profit
Trailblazer Company sells a product for $95 per unit. The variable cost is $55 per unit, and fixed costs are $312,000.
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 $65,520.
a. Break-even point in sales units
units
b. Break-even point in sales units if the company desires a target profit of $65,520
units
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Target Profit Trailblazer Company sells a product for $95 per unit. The variable cost is $55 per unit, and fixed costs are $312,000. 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 $65,520. a. Break-even point in sales units units b. Break-even point in sales units if the company desires a target profit of $65,520 units

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Expert Answer

Step 1

a.

 

...
Selling price per unit
Variable cost per unit
Contribution margin per unit
Fixed costs
$95
$55
$40
$312,000
(S133,200 $30)
Breakeven point in sales units
7,800
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Selling price per unit Variable cost per unit Contribution margin per unit Fixed costs $95 $55 $40 $312,000 (S133,200 $30) Breakeven point in sales units 7,800

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