3. Sales = Variable expenses + Fixed expenses + Profits
$25Q = $18Q + $210,000 + $90,000
$7Q = $300,000
Q = $300,000 ÷ $7 per ball
Q = 42,857 balls (rounded)
Alternative solution:
Fixed expenses +Target profit
Unit sales to attain= target profit Unit contribution margin
$210,000 + $90,000
= =42,857 balls
$7 per ball
Thus, sales will have to increase by 12,857 balls (42,857 balls, less
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