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Brilliant_brown [7]
3 years ago
9

A company desires to sell a sufficient quantity of products to earn a profit of $300000. If the unit sales price is $32, unit va

riable cost is $12, and total fixed costs are $800000, how many units must be sold to earn net income of $300000?a) 168,750 unitsb) 90,000 unitsc) 112,500 unitsd) 67,500 units
Business
1 answer:
Liula [17]3 years ago
3 0

Answer:

55,000 units

Explanation:

Calculation for how many units must be sold

Using this formula

Units to be sold=Total fixed costs +Profit/(Sales price-Variable cost )

Let plug in the formula

Units to be sold =($800,000+$300,000)/($32 -$12)

Units to be sold=$1,100,000/$20

Units to be sold=55,000 units

Therefore units that must be sold to earn net income of $300000 will be 55,000 units

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