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Managerial Accounting

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Moderate

Target Profit in Units for Luggage

MGRACT-UWMEGK

Hartman Corp manufactures luggage sets for sale to retailers. Each luggage set sells for \$1,150. The contribution margin ratio is 39%, and the annual fixed costs are \$850,000.

How many luggage sets must be sold to make a target profit of \$300,000?

A

2,000

B

3,000

C

1,639

D

2,564