The total fixed costs are $1,500,000 and the unit variable costs are $200,000. If the company desires a profit of $2 million, what is the number of units needed to achieve this goal? Also find the breakeven number of units.

The total fixed costs are $1,500,000 and the unit variable costs are $200,000. If the company desires a profit of $2 million, what is the number of units needed to achieve this goal? Also find the breakeven number of units.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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2. ABC company had a total revenue of $6,000,000.
The total fixed costs are $1,500,000 and the unit
variable costs are $200,000. If the company
desires a profit of $2 million, what is the number
of units needed to achieve this goal?
Also find the breakeven number of units.

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