Answer:
c. 21,645
Explanation:
The computation of number of fans required to meet the company's goal is shown below:
= (Fixed cost+ target profit) ÷ (Contribution margin per unit)
= ($222,640 + $470,000) ÷ ($32)
= ($692,640) ÷ ($32)
= $21,645
The contribution margin per unit = Selling price per unit - Variable expense per unit
Therefore, the number of fans equal to $21,645
We calculated by above formula.
