Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 37

Target profit
Versa Inc. sells a product for $100 per unit. The variable cost is $75 per unit, and fixed costs are $45,000. Determine (a) the breakeven point in sales units and (b) the breakeven point in sales units if the company desires a target profit of $25,000.
Target profit
Scrushy Company sells a product for $150 per unit. The variable cost is $110 per unit, and fixed costs are $200,000. Determine (a) the break-even point point in sales units and (b) the break-even point in sales units if the company desires a target profit of $50,000.