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Sehgal Corporation has a single product whose selling price is $140 and whose variable expense is$60 per unit. The company's monthly fixed expense is $40,000.
Required:
Question 1. Using the equation method, solve for the unit sales that are required to earn a target profit of $6,000.
Question 2. Using the formula method, solve for the dollar sales that are required to earn a target profit of $8,000.
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why is this information not enough by itself for management to decide whether to accept or reject the project?
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