Break-even and target profits.Analysis of the operations of Reyes Company shows the
fixed costs to be $140,000 and the variable costs to be $7 per unit.Selling price is $14
per unit.
Required:
a.Derive the break-even point expressed in units.
b.How many units must the firm sell to earn a profit of $168,000?
c.What would profits be if revenue from sales were $2,100,000?
(Reyes Company;break-even and target profits. )

Question

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The Answer of Break-even and target profits.Analysis of the operations of Reyes Company shows the
fixed costs to be $140,000 and the variable costs to be $7 per unit.Selling price is $14
per unit.
Required:
a.Derive the break-even point expressed in units.
b.How many units must the firm sell to earn a profit of $168,000?
c.What would profits be if revenue from sales were $2,100,000?
(Reyes Company;break-even and target profits. )

Break-Even and Target Profits