Sanchez & Ryan, Inc, sells a single product. This year, 20,000 units were sold resulting in $130,000 of sales revenue, $60,000 of variable costs, and $17,500 of fixed costs.
-The number of units that must be sold annually to achieve $52,500 of profits is:
A)20,000 units.
B)15,000 units.
C)10,000 units.
D)5,000 units.

Question

Quizplus · Accepted Answer

A)($17,500 + $52,500)/ $3.50 = 20,000 units

Sanchez & Ryan, Inc, Sells a Single Product