Final answer:
To achieve a target profit of $15,000, Ferkil Corporation must sell 3,200 units, calculated by dividing the sum of fixed costs and target profit by the selling price per unit since variable costs are not provided.
Step-by-step explanation:
To determine the sales in units required for Ferkil Corporation to achieve a target profit of $15,000, we start by understanding the break-even point. We are told that the company must sell 6,500 units to break even, where fixed expenses total $65,000 per year. The selling price per unit is $25.00.
The break-even point in sales units is when total revenue equals total costs, consisting of fixed costs plus variable costs. As variable costs are not provided, we assume them to be constant per unit and subsumed within the break-even calculation.
To find out how many units need to be sold to achieve a target profit, the following formula is used:
Sales units for target profit = (Fixed costs + Target profit) / (Selling price per unit - Variable cost per unit)
However, without the variable cost per unit, we will use the break-even units as a starting point:
Target profit in total revenue = Target profit + Fixed costs = $15,000 + $65,000 = $80,000
Sales units for target profit = $80,000 / $25.00 = 3,200 units
Therefore, to achieve a $15,000 target profit, the company must sell 3,200 units.