Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $100000. If the unit sales price is $10 unit variable cost is $8 and total fixed costs are $200000 how many units must be sold to earn income of $100000?
A) 150000 units
B) 100000 units
C) 37500 units
D) 1500000 units

Question

Quizplus · Accepted Answer

To calculate the number of units needed to be sold to earn a profit of $100,000, use the formula: (Fixed Costs + Desired Profit) / (Sales Price per Unit - Variable Cost per Unit). Here, it is ($200,000 + $100,000) / ($10 - $8) = 150,000 units.

Reliable Manufacturing Wants to Sell a Sufficient Quantity of Products