Managerial Accounting
Reliable Manufacturing wants to sell a sufficient quantity of
products to earn a profit of $80,000. If the unit sales price is
$10, unit variable cost is $8, and total fixed costs are $160,000,
how many units must be sold to earn income of $80,000?
120,000 units
80,000 units
30,000 units
1,200,000 units
Correct answer---------120,000 units
Working
A | Sale Price per unit | $ 10.00 |
B | Variable Cost per Unit | $ 8.00 |
C=A x B | Unit Contribution | $ 2.00 |
D | Total Fixed cost + Desired profit | $ 240,000.00 |
E=D/C | Breakeven point in units | 120000.00 |
Managerial Accounting Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit...
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