Target Profit Altstadt Inc. sells a product for $50 per unit. The variable cost is $20 per unit, and fixed costs are $1,800,000. Determine (a) the break-even point in sales units and (b) the sales units required to achieve a target profit of $270,000.

Managerial Accounting
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ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
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Target Profit

Altstadt Inc. sells a product for $50 per unit. The variable cost is $20 per unit, and fixed costs are $1,800,000.

Determine (a) the break-even point in sales units and (b) the sales units required to achieve a target profit of $270,000.

a. Break-even point in sales units  
b. Break-even point in sales units required to achieve a target profit of $270,000
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