Liman Corporation has a single product whose selling price is $137 and whose variable expense is $58 per unit. The company’s monthly fixed expense is $38,500. Using the equation method, determine for the unit sales that are required to earn a target profit of $7,004. Using the formula method, determine for the dollar sales that are required to earn a target profit of $8,900.
A) Using the equation method, determine for the unit sales that are required to earn a target profit of $7,004.
B) Using the formula method, determine for the dollar sales that are required to earn a target profit of $8,900.