Question

Harrison Manufacturing has the following product information available:

Sales price	$50 per unit
Variable costs	$26 per unit
Fixed costs	$87,600

Refer to the Harrison Manufacturing information above. How many units need to be sold in order to earn a target profit of $175,000?

Answer 1

Units to be sold are 10,942 Units or 10,941.67.

Use 10,942 as the units will not be sold in fraction.

Working

A	Sale Price per unit	$                   50.00
B	Variable Cost per Unit	$                   26.00
C=A x B	Unit Contribution	$                   24.00
D	Total Fixed cost +Desired income [87600+175000]	$        262,600.00
E=D/C	Units to be sold	10,942