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suter [353]
3 years ago
12

A manufacturer has invested $120,000 in a new product and wants to set a price to earn a $80,000 profit. The variable cost per u

nit is $20 and the company sells the units at $100.
Mathematics
1 answer:
Misha Larkins [42]3 years ago
6 0

Answer: 500

Step-by-step explanation:

The remainder of the question is:

How many units does the company need to sell to reach the target profit?

The required sales to break even will be calculated as:

= (Fixed cost + Required profit) / ( Price per unit - Variable cost)

= (120000 - 80000) / (100 - 20)

= 40000/80

= 500

The company needs to sell 500 units.

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