Austin Manufacturing had the following operating data for the year just ended:
Management plans to improve the quality of its only product by replacing a component that costs $3.50 with a higher-grade component that costs $5.50,and renting a packing machine for $18,000 a year.If the desired target operating profit is $288,000,how many units must the company sell?
A) 19,300 units.
B) 21,316 units.
C) 22,500 units.
D) 20,842 units.

Question

Austin Manufacturing had the following operating data for the year just ended: 
Management plans to improve the quality of its only product by replacing a component that costs $3.50 with a higher-grade component that costs $5.50,and renting a packing machine for $18,000 a year.If the desired target operating profit is $288,000,how many units must the company sell?
A) 19,300 units. 
B) 21,316 units. 
C) 22,500 units. 
D) 20,842 units.

Quizplus · Accepted Answer

The Answer of Austin Manufacturing had the following operating data for the year just ended: 
Management plans to improve the quality of its only product by replacing a component that costs $3.50 with a higher-grade component that costs $5.50,and renting a packing machine for $18,000 a year.If the desired target operating profit is $288,000,how many units must the company sell?
A) 19,300 units. 
B) 21,316 units. 
C) 22,500 units. 
D) 20,842 units.

Austin Manufacturing Had the Following Operating Data for the Year