EJL Herbal Remedies sells several products for an average price of $17 per unit. Average variable costs per unit are as follows:
EJL's annual fixed costs total $82,500.
-The number of units that EJL must sell annually to make a profit of $75,000 is:
A)7,500 units.
B)18,000 units.
C)21,000 units.
D)30,000 units.

Question

EJL Herbal Remedies sells several products for an average price of $17 per unit. Average variable costs per unit are as follows:  
EJL's annual fixed costs total $82,500.
-The number of units that EJL must sell annually to make a profit of $75,000 is:
A)7,500 units. 
B)18,000 units. 
C)21,000 units. 
D)30,000 units.

Quizplus · Accepted Answer

C)($75,000 + $82,500)/ $7.50 = 21,000 units

EJL Herbal Remedies Sells Several Products for an Average Price