Maple Enterprises sells a single product with a selling price of $71 and variable costs per unit of $34. The company’s monthly fixed expenses are $17,370. How many units will Maple need to sell in order to reach a target profit of $28,637? Round up to the nearest whole unit.
Maple Enterprises sells a single product with a selling price of $71 and variable costs per unit of $34. The company’s monthly fixed expenses are $17,370. How many units will Maple need to sell in order to reach a target profit of $28,637? Round up to the nearest whole unit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Maple Enterprises sells a single product with a selling price of $71 and variable costs per unit of $34. The company’s monthly fixed expenses are $17,370.
How many units will Maple need to sell in order to reach a target profit of $28,637? Round up to the nearest whole unit.
Expert Solution
Step 1
Introduction:
The breakeven point is the level of sales at which a business loses money exactly. Once it reaches this point, a company can cover its fixed expenses. The capacity that remains after the breakeven point is reached, which tells you of the maximum profit that may be made, can be calculated using the breakeven point.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education