Question

Data concerning bedwell enterprises corporation's single product appear below:

selling price per unit $ 210.00
variable expense per unit $ 96.50
fixed expense per month $ 444,990
the unit sales to attain the company's monthly target profit of $29,000 is closest to:
note: do not round intermediate calculations.

Answer 1

Bedwell Enterprises must sell approximately 4,176 units of their product to achieve the monthly target profit of $29,000, based on provided data on selling price, variable cost per unit, and fixed monthly expenses.

Step-by-step explanation:

The given data concerns Bedwell Enterprises Corporation's single product and details its selling price, variable expenses, and fixed expenses.

To calculate the unit sales needed to achieve a target profit of $29,000, we use the formula for the break-even point in units, with adjustments for target profit:

Sales = (Fixed Expenses + Target Profit) / (Selling Price per unit - Variable Expense per unit)

Plugging in the given values:

Sales = ($444,990 + $29,000) / ($210.00 - $96.50)

Sales = $473,990 / $113.50

Sales = 4,176.21 units

Therefore, Bedwell Enterprises needs to sell approximately 4,176 units to meet the monthly target profit of $29,000.