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 $31,900.
Required:
1. Using the equation method, determine for the unit sales that are required to earn a target profit of $6,250. (Round up your answer to the nearest whole number.)
2. Using the formula method, determine for the unit sales that are required to earn a target profit of $9,400.(Round up your answer to the nearest whole number.)