Question & Answer: Lin Corporation has a single product whose selling price is $140 and whose variable expense is $70 per u…..

[The following Information applles to the questions displayed below Lin Corporation has a single product whose selling price is $140 and whose variable expense is $70 per unit. The companys monthly fixed expense is $31,600. value 1.00 points ing qmethod determine for he uni sales that are requred o am a target proft f Required: $8,300. (Round up your answer to the nearest whole number.) Unit sales

Lin Corporation has a single product whose selling price is $140 and whose variable expense is $70 per unit. The company’s monthly fixed expense is $31, 600. Required: Using the equation method, determine for the unit sales that are required to earn a target profit of $8, 300. (Round up your answer to the nearest whole number.)

Expert Answer

Let units sold be x.

Using the equation method:

Sales=Variable expense+Fixed expense+Target profit

140x=70x+31600+8300

70x=39900.

Hence x=unit sales=(39900/70)=570

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