Question

Chelsea Company has sales of $400,000, variable costs of $10 per unit, fixed costs of $100,000, and a target profit of $60,000. How many units were sold?

a. 12,000
b. 18,000
c. 24,000

Answer 1

24,000

Step-by-step explanation:

Chelsea company had sales of $400,000

Variable cost is $10 per unit

Fixed costs is $100,000

Tarhet profit is $60,000

Thetefore The units sold can be calculated as follows

400,000-10Q-$100,000= $60,000

$400,000-$100,000-10Q= $60,000

$300,000-Q= $60,000

$300,000-$60,000= 10Q

$240,000= 10Q

Q= 240,000/10

Q= 24,000