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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
EXERCISE 5–6 Compute the Level of Sales Required to Attain a Target Profit [LO5]
Liman Corporation has a single product whose selling price is $140 and whose variable expense is
$60 per unit. The company’s monthly fixed expense is $40,000.
Required:
1.      Using the equation method, solve for the unit sales that are required to earn a target profit of
$6,000.
2.      Using the formula method, solve for the dollar sales that are required to earn a target profit of
$8,000.
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