[Solved] Break-Even and Target Profits

Question 109
Essay

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. )

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