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A company's selling price is $90 per unit, variable cost per unit is $28 and total fixed expenses are $320,000. The number of unit sales needed to earn a target profit of $200,800 is ______.

Respuesta :

Parrain

Based on the selling price, the variable cost, and the fixed costs, the number of units to be sold to get $200,800 in profits is 8,400 units.

How many units should be sold?

The number of units to be sold can be found by the formula:

= (Fixed costs + Target profit) / (Selling price - Variable cost)

Solving gives:

= (320,000 + 200,800) / (90 - 28)

= 8,400 units

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