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A product sells for $200 per unit, and its variable costs per unit are $130. the fixed costs are $420,000. if the firm wants to earn $35,000 pretax income, how many units must be sold?
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A product sells for $200 per unit, and its variable costs per unit are $130. the fixed costs are $420,000. if the firm wants to earn $35,000 pretax income, how many units must be sold?

User Bohdan Savych
by
7.8k points

1 Answer

5 votes
6500 units
As he should sell 6000 units to cover his fixed cost (420,000/70)
And to gain 35,000$ he should sell another 500 (35,000/70)
User Timothyclifford
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8.4k points
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