Answer:
7,451
Explanation:
The net income is the profit/loss made after the deduction of all expenses from the revenue or sales made including taxes.
The cost elements includes the fixed cost and the variable cost which is dependent on the level of activities.
Given,
Fixed cost = $25,860,000
Variable cost per unit = $12,100
Selling price per unit = $17,000
Tax rate = 28%
Net income planned = $7,668,000
Let the number of freezers to be sold be p
17000p - (12100p + 25,860,000) - 0.28((17000p - (12100p + 25,860,000))= 7,668,000
0.72((17000p - (12100p + 25,860,000)) = 7,668,000
3528p = 7,668,000 + 18619200 = 26287200
p = 26287200 /3528
p = 7451
Crane Machine Works would have to sell 7,451 freezers to make a net profit of $7,668,000.
