Data concerning Bedwell Enterprises Corporation's single product appear below:

Data concerning Bedwell Enterprises Corporation's single product appear below:

Selling price per unit	$	215.00
Variable expenses per unit	$	97.00
Fixed expense per month	$	446,540

The unit sales to attain the company's monthly target profit of $30,000  is closest to: (Do not round intermediate calculations.)

Garrison 16e Rechecks 2018-06-19

Multiple Choice

• 4,038

  Correct
• 3,784 
• 2,216 
• 4,913 

Explanation

Unit CM = Selling price per unit – Variable expenses per unit

= $215.00 per unit – $97.00 per unit

= $118.00 per unit

Unit sales to attain a target profit = (Target profit + Fixed expenses) ÷ Unit CM

= ($30,000 + $446,540) ÷ $118.00 per unit

= $476,540 ÷ $118.00 per unit

= 4,038 units