Question

g "If the unit sales price is $16, variable costs are $4 per unit and fixed costs are $14,000, how many units must be sold to earn an income of $160,000?"

Answer 1

14,500

Step-by-step explanation:

Income = Total revenue - Total cost

Total cost = total Fixed cost + Total variable cost

total Fixed cost = $14,000

Total Variable costs = variable cost per unit x quantity = $4q

Total cost = $14,000 + $4q

Total revenue = price x quantity = $16q

$160,000 = = $16q - $14,000 - $4q

$174,000 = $12q

Q = 14,500

I hope my answer helps you