Answer:
= 5,200
Step-by-step explanation:
Let the sales units be represented by variable X
Profit = Revenues -COGS -Fixed costs
Revenues = Selling price *X = $5X
COGS = $2.5X
Fixed costs = $3,000
Desired profit = $10,000
Therefore;
10,000 = 5X -2.5X - 3,000
Add 3,000 on both sides;
10,000 +3,000 = 2.5X
13,000 = 2.5X
Divide both sides by 2.5 to solve for X;
13,000/2.5 = X
X = 5,200
Therefore, the sales level in units is 5,200