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

User Haxxerz
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1 Answer

2 votes

Equation used: $35,000 divided by $200

Answer: He needs to sell 175 units to make $35,000.

User Alkar
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