Evaluate level of sales required to attain a target profit

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Reference no: EM1311481

Compute the Level of Sales Required to Attain a Target Profit.

Lin Corporation has a single product whose selling price is $120 and whose variable cost is $80 per unit. The company's monthly fixed expense is $50,000.

Required:

1. Using the equation method, solve for the unit sales that are required to earn a target profit of $10,000.
2. Using the contribution margin approach, solve for the dollar sales that are required to earn a target profit of $15,000.

Reference no: EM1311481

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