Thursday 8 November 2012

A company desires to sell a sufficient quantity of products to earn a profit of $300,000. If the unit sales price is $20, unit variable cost is $12, and total fixed costs are $600,000, how many units must be sold to earn net income of $300,000? A) 168,750 units B) 112,500 units C) 90,000 units D) 67,500 units

A company desires to sell a sufficient quantity of products to earn a profit of $300,000.

 

If the unit sales price is $20, unit variable cost is $12, and total fixed costs are $600,000,

 

how many units must be sold to earn net income of $300,000?

 

A) 168,750 units

 

B) 112,500 units

 

C) 90,000 units

 

D) 67,500 units



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