White Lake Inc. produces and sells a single product. Data concerning that product appear below: Selling price per unit $ 230.00 Variable expense per unit $ 103.50 Fixed expense per month $ 518,650   Required: a. What is the minimum amount of sales revenues in dollars to break even? b. Assume the company's monthly target profit is $12,650. Determine the number of units that White Lake needs to sell to attain this target profit?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...
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White Lake Inc. produces and sells a single product. Data concerning that product appear below:

Selling price per unit

$

230.00

Variable expense per unit

$

103.50

Fixed expense per month

$

518,650

 

Required:

a. What is the minimum amount of sales revenues in dollars to break even?

b. Assume the company's monthly target profit is $12,650. Determine the number of units that White Lake needs to sell to attain this target profit?

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