Twisdale Corporation manufactures numerous products, one of which is called Omicron-52. The company has provided the following data about this product: Assume that the total traceable fixed expense does not change. How many units of product Omicron-52 would Twisdale need to sell at a price of $40.32 to earn the same net operating income that it currently earns at a price of $42.00? (Round your answer up to the nearest whole number.)
A) 138,000
B) 155,405
C) 180,181
D) 168,000

Question

Twisdale Corporation manufactures numerous products, one of which is called Omicron-52. The company has provided the following data about this product:  Assume that the total traceable fixed expense does not change. How many units of product Omicron-52 would Twisdale need to sell at a price of $40.32 to earn the same net operating income that it currently earns at a price of $42.00? (Round your answer up to the nearest whole number.)
A) 138,000 
B) 155,405 
C) 180,181 
D) 168,000

Quizplus · Accepted Answer

Profit = (P − V) × Q - Fixed expenses
$330,000 = ($40.32 per unit − $27.00 per unit) × Q − $2,070,000
$2,400,000 = ($40.32 per unit − $27.00 per unit) × Q
$2,400,000 = ($13.32 per unit) ×Q
Q = $2,400,000 ÷ $13.32 per unit = 180,181 units (rounded up)

Twisdale Corporation Manufactures Numerous Products, One of Which Is Called