ADMS 3530 Lecture 4: Suggested Midterm Questions-1
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Exercise 5-7 Compute the Level of Sales Required to Attain aTarget Profit [LO5-6]
[The following information applies to the questionsdisplayed below.] |
Lin Corporation has a single product whose selling price is $135and whose variable expense is $54 per unit. The companyâs monthlyfixed expense is $40,280. |
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Section BreakExercise 5-7 Compute the Level ofSales Required to Attain a Target Profit [LO5-6]
4.
value:
2.00 points
Required information
Exercise 5-7 Part 1
Required: | |
1. | Using the equation method, determine for the unit sales that arerequired to earn a target profit of $6,700. |
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Hint #1
5.
value:
2.00 points
Required information
Exercise 5-7 Part 2
2. | Using the formula method, determine for the unit sales that arerequired to earn a target profit of $9,100.(Round youranswer to the nearest whole number.) |