A manufacturing company leases a building for $110,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $14 in labor and $10 in materials. The product can be sold for $39. How many units must be sold each year for the company to earn a profit of $65,000 per year? Choose the closest answer below. A. 10,400 B. 13,000 C. 20,800 D. 7,800 E. 18,200

A manufacturing company leases a building for $110,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $14 in labor and $10 in materials. The product can be sold for $39. How many units must be sold each year for the company to earn a profit of $65,000 per year? Choose the closest answer below. A. 10,400 B. 13,000 C. 20,800 D. 7,800 E. 18,200

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 3E

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