Question

Finch Corporation is a manufacturing company that makes small electric motors it sells for $48 per...

Finch Corporation is a manufacturing company that makes small electric motors it sells for $48 per unit. The variable costs of production are $28 per motor, and annual fixed costs of production are $310,000.

Required

  1. How many units of product must Finch make and sell to break even?

  2. How many units of product must Finch make and sell to earn a $70,000 profit?

  3. The marketing manager believes that sales would increase dramatically if the price were reduced to $47 per unit. How many units of product must Finch make and sell to earn a $108,000 profit, if the sales price is set at $47 per unit?


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Answer #1

48 Per unit 28 Per unit 310000 20 Per unit Selling Price Per unit Varaibel Expense Per unit Fixed Expenses Contribution Margi

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