Answer:
the required sales are $126,000
Step-by-step explanation:
Since the total cost C is equal to the fixed costs plus the variable costs
C= fixed costs + variable costs = $44,800 + $3.80/unit * Q
where Q= quantity of units sold
the sales S will be
S= unit price * quantity sold = $7/unit * Q
finally since the profit is equal to the sales minus the total costs
P = S - C
$12,800 = $7/unit * Q - ($44,800 + $3.80/unit * Q )
$12,800 + $44,800 = $7/unit * Q - $3.80/unit * Q = $3.2/ unit * Q
Q = $57,600 / $3.2/ unit = 18000 units
therefore the required sales are
S=$7/unit * Q = $7/unit * 18000 units = $126,000
therefore the required sales are $126,000
