Answer:
option (C) 75,000
Explanation:
Data provided in the question:
Selling cost of digital cameras = $175
Required return on sales = 25%
feasible costs = $9,944,000
cost reduction = $100,250
Now,
cost of camera = $175 × (1 - Desired profit )
or
cost of camera = $175 × (1 - 0.25)
or
cost of camera = $131.25
Now,
Net cost of cameras sold = cost of camera × Number of cameras FI sell
$9,944,000 - $100,250 = $131.25 × Number of cameras FI sell
or
$9,843,750 = $131.25 × Number of cameras FI sell
or
Number of cameras FI sell = 75,000
Hence,
the answer is option (C) 75,000
