Assume a company produces one product that sells for $55, has a variable cost perunit of $35, and has fixed costs of $100,000. How many units must the company sellto earn a target profit of $50,000?a. 7,500 unitsb. 10,000 unitsc. 12,500 unitsd. 15,000 units
Assume a company produces one product that sells for $55, has a variable cost perunit of $35, and has fixed costs of $100,000. How many units must the company sellto earn a target profit of $50,000?a. 7,500 unitsb. 10,000 unitsc. 12,500 unitsd. 15,000 units
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 3BE
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Assume a company produces one product that sells for $55, has a variable cost per
unit of $35, and has fixed costs of $100,000. How many units must the company sell
to earn a target profit of $50,000?
a. 7,500 units
b. 10,000 units
c. 12,500 units
d. 15,000 units
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