Question

Merlot, Inc. has fixed costs of $235,000, sales price of $55, and variable cost of $39 per unit. How many units must be sold to earn profit of $37,000? O 7000 O 14,500 O 24,500 O 17000

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SOLUTION Formula for No. of units required to be sold to earn the desired profit: Fixed cost+ desired profit # Contribution p

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